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					Strategic Process 1
Insourcing/outsourcing decision
General description                                      Various aspects    Notes                                                                                                                               0 (N/A)             1                   2                  3                  4                   5                    6                    7                  8                     9                    10
Making a strategic choice between insourcing (in 1.1 Documentation          Records of the decision-making process used to reach a specific decision.                                                                     Little or no        Little evidence of                                                              Recording of the      Evidence of a                           Explicit recording
house) or outsourcing. Outsourcing refers to                                                                                                                                                                              evidence of a       a structured                                                                    reasoning behind      structured                              of results based
processes that were originally performed in house,                                                                                                                                                                        structured          implementation                                                                  this objective        implementation                          on evaluation
but are now carried out by an external supplier (for                                                                                                                                                                      decision making     process                                                                         analysis              process
a more detailed definition and examples refer to                                                                                                                                                                          process
the MSU+ model)
                                                     1.2 Strategy           Is the decision based on a long term strategy or short term objectives.                                                                                           Short term                              Short and long
                                                                                                                                                                                                                                              objectives                              term strategy
                                                  1.3 Cost/benefit          Complete a costs/benefits analysis on the basis of political and/or legal risk, time, costs, capacity, know-how, etc. required to                                 Decision based                                                                  Decision based
                                                      analysis              carry out the activities within the organisation.                                                                                                                 on a limited                                                                    on integral set of
                                                                                                                                                                                                                                              number of                                                                       evaluation criteria
                                                                                                                                                                                                                                              evaluation criteria

                                                  1.4 Information           Use of internal and/or external information for decision making (external information such as that originating from suppliers or                                  Internal              And external      Benchmark
                                                                            general market information)                                                                                                                                       information           information       studies if
                                                                                                                                                                                                                                                                                      necessary
                                                  1.5 Team composition      Functional or multi-disciplinary team that will reach a decision (a multi-disciplinary team includes employees from both                                          Multi-disciplinary                                                                                                                                                 Multi-disciplinary
                                                                            purchasing and other disciplines)                                                                                                                                 team                                                                                                                                                               decision making
                                                                                                                                                                                                                                                                                                                                                                                                                 process that includes
                                                                                                                                                                                                                                                                                                                                                                                                                 others outside the
                                                                                                                                                                                                                                                                                                                                                                                                                 organisation

                                                  1.6 Supplier              Use of market research and assessment to identify potential suppliers (in the case of insourcing, including associated public                                                                             Do short and        Identification of
                                                                            organisations)                                                                                                                                                                                            long term           potential
                                                                                                                                                                                                                                                                                      strategy and        suppliers on the
                                                                                                                                                                                                                                                                                      capacities          basis of market
                                                                                                                                                                                                                                                                                      involve the         research and
                                                                                                                                                                                                                                                                                      current supplier    supplier
                                                                                                                                                                                                                                                                                      in the decision     evaluation (also
                                                                                                                                                                                                                                                                                      making process?     take into account
                                                                                                                                                                                                                                                                                                          the strategy and
                                                                                                                                                                                                                                                                                                          capacities of
                                                                                                                                                                                                                                                                                                          potential
                                                                                                                                                                                                                                                                                                          suppliers)

                                                  1.7 Approach to           From ad hoc decision making to a more structured decision making process, with systems in place to deal with various aspects                  Ad hoc approach Systematic
                                                      decision making       including risk management.                                                                                                                    to decision     decision making
                                                                                                                                                                                                                          making process process
                                                                                                                                                                                                                          depends on
                                                                                                                                                                                                                          specific key
                                                                                                                                                                                                                          personnel




                                                  1.8 Primary/secondary Differentiation of core and non-core competencies                                                                                                                     Decision making                         Takes into                                                                                                                 Evaluation of core
                                                      activities                                                                                                                                                                              process based                           account current                                                                                                            competencies on the
                                                                                                                                                                                                                                              on differentiation                      and future                                                                                                                 basis of cross-border
                                                                                                                                                                                                                                              between core                            requirements                                                                                                               insight (internal,
                                                                                                                                                                                                                                              and non-core                                                                                                                                                       clients, suppliers and
                                                                                                                                                                                                                                              competencies                                                                                                                                                       other public
                                                                                                                                                                                                                                                                                                                                                                                                                 organisations)
                                                  1.9 Assessment/evalu      Comparing actual performance against objectives using measuring instruments and performance indicators. This should also                      Few or no                                                                                           Evaluation                                                    Formal
                                                      ation process         include the methods by which outsourced activities are monitored and supervised.                                                              measuring                                                                                           process of all                                                evaluation
                                                                                                                                                                                                                          instruments/perfo                                                                                   cost elements                                                 process based
                                                                                                                                                                                                                          rmance                                                                                              before and after                                              on objectives
                                                                                                                                                                                                                          indicators                                                                                          insourcing/outso                                              (including
                                                                                                                                                                                                                          (before/after)                                                                                      urcing.                                                       analysis of
                                                                                                                                                                                                                                                                                                                              Assessment                                                    initiatives and
                                                                                                                                                                                                                                                                                                                              based on                                                      corrective
                                                                                                                                                                                                                                                                                                                              objectives                                                    measures where
                                                                                                                                                                                                                                                                                                                                                                                            necessary)
                                                  1.1 Implementation        Structured implementation of insourcing or outsourcing. Implementation is structured if the outsourced/insourced tasks are clear              Ad hoc crisis       Little evidence of                                                                                    Implementation     Formal
                                                  0   process               for the organisation and the supplier and have been recorded in outsourcing/insourcing agreements. The outcomes for the                       related             a structured                                                                                          process is         implementation
                                                                            internal organisation must also be clear.                                                                                                     implementation      implementation                                                                                        structured.        process and the
                                                                                                                                                                                                                                              process                                                                                               Defined            outcomes for the
                                                                                                                                                                                                                                                                                                                                                    outsourcing/inso   internal
                                                                                                                                                                                                                                                                                                                                                    urcing agreement   organisation are
                                                                                                                                                                                                                                                                                                                                                    available. Some    clear
                                                                                                                                                                                                                                                                                                                                                    measurable
                                                                                                                                                                                                                                                                                                                                                    objectives have
                                                                                                                                                                                                                                                                                                                                                    been defined.

                                                  1.1 Involvement of     The degree to which purchasing expertise is involved in the decision making process, implementation and evaluation                               Purchasing                                Purchasing                                                Purchasing
                                                  1   purchasing experts                                                                                                                                                  expertise not                             expertise                                                 expertise is also
                                                                                                                                                                                                                          involved or only                          involved as                                               involved in
                                                                                                                                                                                                                          in/during                                 information                                               general
                                                                                                                                                                                                                          implementation                            source with                                               commercial
                                                                                                                                                                                                                                                                    regard to                                                 considerations
                                                                                                                                                                                                                                                                    suppliers
                                                  1.1 Communication         Communication about insourcing and outsourcing with internal and external stakeholders                                                        No                  Communication                           Communication                           An extensive                                                  And
                                                  2                                                                                                                                                                       communication       only within the                         between                                 communication                                                 communication
                                                                                                                                                                                                                                              project                                 departments,                            plan that                                                     on
                                                                                                                                                                                                                                                                                      within the entire                       includes various                                              insourcing/outso
                                                                                                                                                                                                                                                                                      organisation                            internal                                                      urcing with the
                                                                                                                                                                                                                                                                                                                              stakeholders                                                  suppliers market
                                                  1.1 Legislation and       The extent to which there is evidence that, when making a decision on insourcing or outsourcing, legislation and regulations such             No evidence of      Some evidence         Evidence of                                                                                        Evaluation of
                                                  3   regulations           as EU tendering guidelines are sufficiently taken into account (appropriate and in accordance with the law)                                   adequate            of attention to       compliance with                                                                                    compliance with
                                                                                                                                                                                                                          attention to        legislation and       legislation and                                                                                    legislation and
                                                                                                                                                                                                                          legislation and     regulations           regulations                                                                                        regulations within
                                                                                                                                                                                                                          regulations                                                                                                                                  framework of the
                                                                                                                                                                                                                                                                                                                                                                       insourcing/outso
                                                                                                                                                                                                                                                                                                                                                                       urcing decision




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                                           1.1 External       The extent to which partnerships with external parties have been considered (including public private partnerships, but also                        Little or no                                Careful                                  Formal                                                        Decision making
                                           4   partnerships   between authorities if outside the legal entity of the organisation). A considered decision is made on the basis of a clear                         attention to                                consideration                            considered                                                    about
                                                              understanding of various insourcing/outsourcing options and understanding of the most suitable option, using specific methods                       external                                    has been given                           decision making                                               partnerships with
                                                              and approaches.                                                                                                                                     partnerships                                to external                              on whether or not                                             suitable parties is
                                                                                                                                                                                                                                                              partnerships                             to form                                                       evaluated
                                                                                                                                                                                                                                                                                                       partnerships with
                                                                                                                                                                                                                                                                                                       suitable parties

Summary                                                                                                                                                                                       The process         Little or no          Systematic, multi-    As 2, but based     As 3, but based      As 4, but           As 5, where          As 6, and there is   There is a formal     As 8, but there is   Multi-disciplinary
                                                                                                                                                                                              does not apply to   evidence of the       disciplinary          on internal and     on current and       decisions on        decisions on         evidence of a        decision making       also a formal        decision making
                                                                                                                                                                                              the organisation    presence of a         decision-making       external            future               insourcing/outso    insourcing/outso     structured           process for           high level           process that
                                                                                                                                                                                              or part of the      structured            process around        information.        requirements:        uring are not       urcing have          implementation       insourcing/outso      process for          transcends the
                                                                                                                                                                                              organisation        decision making       core and non-         Purchasing is       decisions have       solely based on     clearly been         process. Clearly     urcing and a          assessing/evalua     organisation:
                                                                                                                                                                                                                  process for           core                  integrated in the   clearly been         knowledge of the    based on             defined              formal                ting the results     assessment of the
                                                                                                                                                                                                                  insourcing or         competences,          decision making     taken on the         short/long term     cost/benefit         outsourcing          implementation        on the basis of      core competences
                                                                                                                                                                                                                  outsourcing. An       based on internal     process as an       basis of the         strategy of         analyses that use    contracts are        process. The          objectives           with no distinctions
                                                                                                                                                                                                                  ad hoc approach       information,          information         organisation's       current suppliers   an integrated set    available that       outcomes for the      (including           between the various
                                                                                                                                                                                                                  is employed.          cost/benefit          source for          strategy and with    and their           of assessment        cover all relevant   internal              analysis of          parties (internal,
                                                                                                                                                                                                                  Specific crisis-      analyses based        knowledge of the    knowledge of the     skills/qualities,   criteria. There is   aspects. Some        organisation are      initiatives and      clients, suppliers).
                                                                                                                                                                                                                  related decision      on a limited          current supplier    short and long       but also on those   a clear picture of   terms of             clear. In addition,   any corrective
                                                                                                                                                                                                                  making and            number of             base. Evidence      term strategy of     of potential        all costs and        reference have       the extent of         measures).
                                                                                                                                                                                                                  implementation        assessment            of compliance       current suppliers    suppliers.          there is a           been formulated.     compliance with       Results are
                                                                                                                                                                                                                  may occasionally      criteria and short    with legislation    and their            Potential           process for                               legislation and       explicitly
                                                                                                                                                                                                                  take place            term goals. Little    and regulations.    skills/qualities     suppliers have      evaluating all                            regulations is        recorded.
                                                                                                                                                                                                                  depending on the      evidence of a         Careful             (with the possible   been identified     cost elements                             evaluated to          Communication
                                                                                                                                                                                                                  key persons           structured            consideration       addition of          by purchasing       before and after                          enable decisions      on
                                                                                                                                                                                                                  involved. Driven      implementation        has been given      benchmark            market research     insourcing/outso                          to be taken about     insourcing/outso
                                                                                                                                                                                                                  by capacity           process.              to external         studies).            and supplier        urcing. The                               insourcing/outso      urcing also takes
                                                                                                                                                                                                                  considerations.       Communication         partnerships.       Communication        assessment.         reasoning behind                          urcing. Decision      place with the
                                                                                                                                                                                                                  Few or no             only takes place                          takes place          There is            this objective                            making about          suppliers market.
                                                                                                                                                                                                                  measuring             within the project.                       between the          evidence of         analysis has                              partnerships with
                                                                                                                                                                                                                  instruments/perfo     There is little                           departments          compliance with     been recorded.                            suitable parties is
                                                                                                                                                                                                                  rmance                evidence of                               within the total     legislation and     There is                                  also evaluated.
                                                                                                                                                                                                                  indicators            attention to                              organisation.        regulations and     evidence of clear
                                                                                                                                                                                                                  (before/after).       legislation and                                                formal              objectives and
                                                                                                                                                                                                                  Purchasing            regulations.                                                   considered          measurement
                                                                                                                                                                                                                  expertise is not                                                                     decision making     take place on the
                                                                                                                                                                                                                  employed or only                                                                     takes place on      basis of these.
                                                                                                                                                                                                                  at the                                                                               whether or not to   Purchasing is
                                                                                                                                                                                                                  implementation                                                                       form partnerships   also involved in
                                                                                                                                                                                                                  stage. Little or no                                                                  with suitable       general
                                                                                                                                                                                                                  communication                                                                        external parties.   commercial
                                                                                                                                                                                                                  takes place with                                                                                         considerations. A
                                                                                                                                                                                                                  stakeholders. No                                                                                         detailed
                                                                                                                                                                                                                  evidence that                                                                                            communication
                                                                                                                                                                                                                  attention is paid                                                                                        plan exists that
                                                                                                                                                                                                                  to legislation and                                                                                       includes the
                                                                                                                                                                                                                  regulations.                                                                                             various internal
                                                                                                                                                                                                                                                                                                                           stakeholders.




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Strategic process 2
Commodity/purchase family strategy development
General description                                    Aspects             Notes                                                                                                                                         1                   2                     3                    4                    5                    6                   7                    8                  9                       10
Define the organisation's requirements and         2.1 Supplier market     Using external information such as market research, market consultation and benchmarking to draw up specifications.                   No or ad hoc                             Thorough                                                                                                                      Benchmarking        Formal risk
formulate an appropriate purchasing strategy for       analysis                                                                                                                                                  supplier market                          understanding of                                                                                                                                  assessment of
each commodity/purchase family.                                                                                                                                                                                  research                                 structure and                                                                                                                                     suppliers market
                                                                                                                                                                                                                                                          development of
                                                                                                                                                                                                                                                          the suppliers
                                                                                                                                                                                                                                                          market
                                                   2.2 Internal client     Using internal information to define requirements.                                                                                                      Reactive                                     Agreement           Pro-active                                                      Intensive
                                                       analysis                                                                                                                                                                    approach and                                 reached             approach                                                        collaboration
                                                                                                                                                                                                                                   consultation the                             reactively                                                                          (commitment)
                                                                                                                                                                                                                                   internal client
                                                   2.3 Strategy            Is the definition of purchasing requirements based on a long term strategy or short term objectives?                                  No or very little Short term focus                             Focus on long                             There are
                                                                                                                                                                                                                 evidence of the   and                                          term                                      partnerships
                                                                                                                                                                                                                 existence of a    consideration is                                                                       across
                                                                                                                                                                                                                 strategy for each given to the                                                                           organisations
                                                                                                                                                                                                                 commodity/purch market approach                                                                          and various
                                                                                                                                                                                                                 ase family                                                                                               innovative forms
                                                                                                                                                                                                                                                                                                                          of purchasing
                                                                                                                                                                                                                                                                                                                          and tendering
                                                                                                                                                                                                                                                                                                                          have received
                                                                                                                                                                                                                                                                                                                          formal
                                                                                                                                                                                                                                                                                                                          consideration.
                                                   2.4 Purchasing flows    Application of purchasing flows and risk analyses                                                                                                         Purchasing flows                           Purchasing flows                                              Purchasing flows
                                                       and risk analyses                                                                                                                                                             and risk analysis                          and risk analysis                                             and risk analysis
                                                                                                                                                                                                                                     with respect to                            with respect to                                               with respect to
                                                                                                                                                                                                                                     price and volume                           cost                                                          process

                                                   2.5 Documentation       Documentation of strategic commodity/purchase families and product requirements                                                       No documented       Documentation        Documentation                             Documented                                Explicit recording
                                                                                                                                                                                                                 strategy for each   on team              showing                                   process for                               of results that
                                                                                                                                                                                                                 commodity/purch     meetings             understanding of                          developing a                              have been
                                                                                                                                                                                                                 ase family          available            suppliers market                          strategy for each                         achieved and
                                                                                                                                                                                                                                                          available                                 commodity/purch                           improved on .
                                                                                                                                                                                                                                                                                                    ase family
                                                   2.6 Decision making     Formalisation of decision making process                                                                                              No obvious          Managers define                                                Formal and
                                                       process                                                                                                                                                   decision making     objectives and                                                 structured
                                                                                                                                                                                                                 process             coordinate the                                                 process for
                                                                                                                                                                                                                                     decision making                                                developing a
                                                                                                                                                                                                                                     process                                                        strategy for each
                                                                                                                                                                                                                                     independently of                                               commodity/purch
                                                                                                                                                                                                                                     teams                                                          ase family
                                                   2.7 Communication       Communication with internal and external stakeholders on commodity/purchase families (consultation and coordination)                  No                                                                                 Some evidence                                                   Regular
                                                                                                                                                                                                                 communication                                                                      of                                                              consultation with
                                                                                                                                                                                                                 with direct                                                                        communication                                                   internal and
                                                                                                                                                                                                                 stakeholders                                                                       with direct                                                     external (as
                                                                                                                                                                                                                                                                                                    stakeholders.                                                   applicable)
                                                                                                                                                                                                                                                                                                                                                                    stakeholders on
                                                                                                                                                                                                                                                                                                                                                                    development of a
                                                                                                                                                                                                                                                                                                                                                                    strategy for each
                                                                                                                                                                                                                                                                                                                                                                    commodity/purch
                                                                                                                                                                                                                                                                                                                                                                    ase family.
                                                   2.8 Team composition    Functional or multi-disciplinary team, which takes decisions. Multi-disciplinary means that employees work within different                               Multi-disciplinary
                                                                           departments of the same organisation                                                                                                                      teams have been
                                                                                                                                                                                                                                     put in place to
                                                                                                                                                                                                                                     develop a
                                                                                                                                                                                                                                     strategy.
                                                                                                                                                                                                                                     Managers
                                                                                                                                                                                                                                     thoroughly
                                                                                                                                                                                                                                     assess whether
                                                                                                                                                                                                                                     teams have the
                                                                                                                                                                                                                                     right
                                                                                                                                                                                                                                     competencies.
                                                   2.9 Procurement         Identification of commodity/purchase families on the basis of procurement models (such as Kraljic Portfolio Analysis and the 80-      No deliberate use                        Deliberate use of                                                                                                             Benchmark
                                                       models              20 rule), differentiation of commodity/purchase families is aligned to the strategy                                                   of procurement                           procurement                                                                                                                   studies are taken
                                                                                                                                                                                                                 models                                   models                                                                                                                        into account in
                                                                                                                                                                                                                                                                                                                                                                                        developing a
                                                                                                                                                                                                                                                                                                                                                                                        strategy for each
                                                                                                                                                                                                                                                                                                                                                                                        commodity/purch
                                                                                                                                                                                                                                                                                                                                                                                        ase family

                                                   2.1 Identification of   Extent to which product definition limits have been considered on the basis of information on suppliers and internal/external                             Product              Knowledge of          Strategy also   Both internal and         Strategy based
                                                   0   product             clients. Includes preparing a programme with respect to the function of the product or services to be purchased, the technical                            requirements are     skills,               based on        external (client)         on development
                                                       requirements        requirements, logistics specifications                                                                                                                    identified           performance and       commodity/purch requirements              plans for
                                                                                                                                                                                                                                     internally           results of both       ase family                                technology that
                                                                                                                                                                                                                                                          current and           requirements                              have been
                                                                                                                                                                                                                                                          potential suppliers   identified by                             agreed and
                                                                                                                                                                                                                                                                                clients                                   clustered within
                                                                                                                                                                                                                                                                                                                          the organisation
                                                                                                                                                                                                                                                                                                                          and with the
                                                                                                                                                                                                                                                                                                                          suppliers market.

                                                   2.1 Purchasing          Drawing up purchasing plans as part of the purchasing policy including tasks, responsibilities and information as well as financial                                                                                      Detailed plan of                          Including
                                                   1   planning            structures and budgets.                                                                                                                                                                                                  action is                                 specific,
                                                                                                                                                                                                                                                                                                    available. Critical                       measurable, time-
                                                                                                                                                                                                                                                                                                    path has been                             bound (SMART)
                                                                                                                                                                                                                                                                                                    made explicit.                            and pioneering
                                                                                                                                                                                                                                                                                                    Little evidence of                        objectives, in line
                                                                                                                                                                                                                                                                                                    pioneering                                with
                                                                                                                                                                                                                                                                                                    objectives                                organisational
                                                                                                                                                                                                                                                                                                                                              and purchasing
                                                                                                                                                                                                                                                                                                                                              policy.

                                                   2.1 Evaluation of       Evaluation of (product) requirements with respect to quality, cost, logistics, technology, service, the environment, etc.                                                                                                Formal                                    Structured                                                    Continuous
                                                   2   results                                                                                                                                                                                                                                      evaluation                                pursuit and                                                   evaluation of the
                                                                                                                                                                                                                                                                                                    process for                               evaluation of                                                 tendering strategy.
                                                                                                                                                                                                                                                                                                    prioritising all                          results, including
                                                                                                                                                                                                                                                                                                    relevant                                  corrective actions
                                                                                                                                                                                                                                                                                                    requirements




83207809-07c5-4d6f-a9fd-3a366ec29a81.xls
                                           2.1 Legislation and   Is there is evidence of sufficient attention to legislation and regulations, such as EU tendering guidelines (appropriate and in                       There is no          Some evidence                             Legislation and       Legislation and                                                     The way in which
                                           3   regulations       accordance with the law), with attention to the risks associated with purchasing processes arising from regulations.                                   evidence of          of attention to                           regulations are       regulations are                                                     the organisation
                                                                                                                                                                                                                        attention to         legislation and                           taken into            complied with.                                                      complies with
                                                                                                                                                                                                                        legislation and      regulations                               account                                                                                   legislation and
                                                                                                                                                                                                                        regulations.                                                                                                                                             regulations is
                                                                                                                                                                                                                                                                                                                                                                                 evaluated.

Summary                                                                                                                                                                                             The process         There is no          Multi-disciplinary   As 2, but the        As 3, but also        Formal,                As 5, but the          As 6, but             As 7, there is       As 8, benchmark     As 9, formal risk
                                                                                                                                                                                                    does not apply to   process for          teams have been      strategy for each    based on the          structured and         strategy is based      including             intensive            studies are taken   assessment of the
                                                                                                                                                                                                    the organisation    developing a         put in place to      commodity/purch      requirements for      documented             on development         specific,             collaboration with   into account in     suppliers market is
                                                                                                                                                                                                    or part of the      strategy for each    develop a            ase family is also   the                   process for            plans for              measurable, time-     internal markets     the strategy        an integral part of the
                                                                                                                                                                                                    organisation        commodity/purch      strategy for each    based on a           commodity/purch       developing a           technology that        bound (SMART)         to draw up the       development         commodity/purchase
                                                                                                                                                                                                                        ase family. No or    commodity/purch      thorough             ase family that       strategy for each      have been              and pioneering        strategy resulting   process.            family strategy.
                                                                                                                                                                                                                        very little          ase family.          understanding of     have been             commodity/purch        agreed and             objectives, in line   in a high degree                         Continuous
                                                                                                                                                                                                                        evidence of the      Managers have        the structure and    identified and        ase family based       clustered within       with                  of commitment.                           evaluation of the
                                                                                                                                                                                                                        existence of         been appointed       development of       agreed with the       on both internal       the organisation       organisational        There is regular                         tendering strategy
                                                                                                                                                                                                                        commodity/purch      with the role of     the suppliers        internal client.      and external           and with the           and procurement       feedback/agreem                          takes place.
                                                                                                                                                                                                                        ase family           formulating the      market               The focus of the      (customer)             suppliers market.      policy. An            ent on the                               Identification and
                                                                                                                                                                                                                        strategies within    team objectives,     (documented),        strategy is on the    requirements,          There are              analysis of           strategy for each                        pursuit of
                                                                                                                                                                                                                        the purchasing       coordinating         including the        long term.            including a            partnerships           purchasing flows      commodity/purch                          improvements in the
                                                                                                                                                                                                                        department. No       decision making      specific situation   Legislation and       formal evaluation      across                 and risks takes       ase family with                          development of
                                                                                                                                                                                                                        documented           about teams,         on the ground in     regulations are       process for            organisations.         place for the         the most                                 tendering strategies
                                                                                                                                                                                                                        strategy. Supplier   thoroughly           the business,        taken into            prioritising all the   Various                process.              important internal                       takes place.
                                                                                                                                                                                                                        market research      assessing the        skills,              account when          relevant               innovative forms       Structured            and possibly
                                                                                                                                                                                                                        does not take        competences of       performance and      determining           requirements.          of tendering have      pursuit and           external
                                                                                                                                                                                                                        place or takes       teams to ensure      results of both      tendering             There is a             received formal        evaluation of         stakeholders.
                                                                                                                                                                                                                        place on an ad       that they match      current and          strategies. There     proactive              consideration          results (including    Inter-
                                                                                                                                                                                                                        hoc basis. No        the aims of the      potential            is also analysis of   approach               (contractual           corrective            relationships and
                                                                                                                                                                                                                        communication        strategy and         suppliers.           purchasing flows      towards the            structures,            actions). There is    mechanisms in
                                                                                                                                                                                                                        with direct          arranging            Procurement          and risk on the       internal market        selection criteria).   explicit recording    the suppliers
                                                                                                                                                                                                                        stakeholders and     participation by     models are also      basis of costs.       when                                          of results that       market are taken
                                                                                                                                                                                                                        no deliberate use    the right            used for the                               determining                                   have been             into account in
                                                                                                                                                                                                                        of procurement       individuals.         different                                  strategy. Detailed                            achieved and          the tendering
                                                                                                                                                                                                                        models to draw       There is             commodity/purch                            plan of action is                             improved on.          strategy. The
                                                                                                                                                                                                                        up a strategy.       evidence that        ase families.                              available, which                                                    degree to which
                                                                                                                                                                                                                        There is no          team meetings                                                   includes tasks,                                                     the organisation
                                                                                                                                                                                                                        evidence of          take place.                                                     responsibilities                                                    complies with
                                                                                                                                                                                                                        attention to         Strategy                                                        and dates. The                                                      legislation and
                                                                                                                                                                                                                        legislation and      development for                                                 critical path is                                                    regulations is
                                                                                                                                                                                                                        regulations.         each                                                            made explicit.                                                      evaluated.
                                                                                                                                                                                                                                             commodity/purch                                                 Some evidence
                                                                                                                                                                                                                                             ase family is                                                   of
                                                                                                                                                                                                                                             based on                                                        communication
                                                                                                                                                                                                                                             internally defined                                              with direct
                                                                                                                                                                                                                                             product                                                         stakeholders.
                                                                                                                                                                                                                                             requirements.                                                   Little evidence of
                                                                                                                                                                                                                                             This information                                                pioneering
                                                                                                                                                                                                                                             is obtained on                                                  objectives.
                                                                                                                                                                                                                                             the basis of                                                    Legislation and
                                                                                                                                                                                                                                             reactive                                                        regulations are
                                                                                                                                                                                                                                             consultation with                                               complied with.
                                                                                                                                                                                                                                             the internal
                                                                                                                                                                                                                                             customer. The
                                                                                                                                                                                                                                             focus is on the
                                                                                                                                                                                                                                             short term and
                                                                                                                                                                                                                                             consideration is
                                                                                                                                                                                                                                             given to the
                                                                                                                                                                                                                                             market approach.
                                                                                                                                                                                                                                             Purchasing flows
                                                                                                                                                                                                                                             and risks are
                                                                                                                                                                                                                                             analysed on the
                                                                                                                                                                                                                                             basis of price
                                                                                                                                                                                                                                             and volume.
                                                                                                                                                                                                                                             There is some
                                                                                                                                                                                                                                             evidence of
                                                                                                                                                                                                                                             attention to
                                                                                                                                                                                                                                             legislation and
                                                                                                                                                                                                                                             regulations.




83207809-07c5-4d6f-a9fd-3a366ec29a81.xls
Strategic process 3
Supply base development and leveraging
General description                                  Aspects                  Notes                                                                                                                               0 (N/A)           1                    2                     3                     4                    5                     6                     7                   8                     9                      10
Supply base development and leveraging is the    3.1 Supplier selection       The existence of a supplier selection process. This means that supplier selection criteria and a formal evaluation procedure need             Supplier             Formal and                                                                                                                       Formally
process of determining the right number and most                              to be defined. Examples of criteria include solvency requirements, being able to guarantee nationwide cover, turnover volume,                 selection is         documented                                                                                                                       documented
suitable suppliers for the organisation and                                   availability of certificates. These are all used to draw up a long list of suppliers.                                                         based on price       supplier selection                                                                                                               process for
ensuring that the supply base is up to date.                                                                                                                                                                                and availability     process based                                                                                                                    supplier selection
                                                                                                                                                                                                                                                 on current                                                                                                                       based on future
                                                                                                                                                                                                                                                 requirements of                                                                                                                  requirements
                                                                                                                                                                                                                                                 the organisation

                                                3.2 Evaluation of             The way in which suppliers are evaluated. This includes monitoring, analysis, quality assessment, cost and purchasing risk                    Qualitative                               Simple supplier        Supplier             Supply base has                            Advanced supplier    Regular                                    Performance of the
                                                    existing suppliers        associated with current suppliers.                                                                                                            perception of                             assessment             assessment           been extensively                           assessment           assessment of                              correct number/type
                                                                                                                                                                                                                            supplier                                  system (quality,       system,              analysed on the                            system available     strategic                                  of suppliers is
                                                                                                                                                                                                                            performance and                           delivery reliability   supplemented by      basis of                                   with objective       suppliers                                  maximised on the
                                                                                                                                                                                                                            basic evaluation                          of strategic           simple supplier      purchasing                                 assessments          (assessment of                             basis of differentiated
                                                                                                                                                                                                                            of costs and                              suppliers)             classification       turnover and                               including            capacity and                               commodity/purchase
                                                                                                                                                                                                                            purchasing risk.                                                 system to classify   purchasing risk                            communication of     updating the                               family strategies
                                                                                                                                                                                                                                                                                             suppliers                                                       their performance    supplier's profile)
                                                                                                                                                                                                                                                                                             according to                                                    to suppliers and
                                                                                                                                                                                                                                                                                             performance                                                     discussion of
                                                                                                                                                                                                                                                                                                                                                             improvement
                                                                                                                                                                                                                                                                                                                                                             programmes

                                                3.3 Team composition          The degree of multi-disciplinary collaboration in selecting and drawing up contracts with suppliers.                                                                                                                                                                           Multi-disciplinary
                                                                                                                                                                                                                                                                                                                                                             involvement
                                                3.4 Organisational            Understanding of current and future requirements of the internal organisation                                                                                                                                                                                                                       Clear picture of      Good
                                                    requirements                                                                                                                                                                                                                                                                                                                  the current and       understanding of
                                                                                                                                                                                                                                                                                                                                                                                  future                the organisation's
                                                                                                                                                                                                                                                                                                                                                                                  requirements of       requirements in
                                                                                                                                                                                                                                                                                                                                                                                  the organisation      respect of the
                                                                                                                                                                                                                                                                                                                                                                                                        supplier base

                                                3.5 Suppliers market          Supplier market analysis carried out to allow suppliers to be evaluated and selected                                                                               Ad hoc supplier                                                                                                                                        Fundamental
                                                    analysis                                                                                                                                                                                     market research                                                                                                                                        supplier market
                                                                                                                                                                                                                                                                                                                                                                                                        research
                                                3.6 Supplier                  Differentiation of suppliers as strategic and non-strategic on the basis of (supplier) procurement models                                     Where                                                                                 Differentiation not   Supplier          Information                                                        Supply base
                                                    differentiation                                                                                                                                                         differentiation                                                                       yet aligned to        differentiation onavailable to                                                       development and
                                                                                                                                                                                                                            takes place,                                                                          (purchasing)          the basis of      strategic suppliers:                                               leveraging on the
                                                                                                                                                                                                                            suppliers are                                                                         analyses that         procurement       status of the                                                      basis of differentiated
                                                                                                                                                                                                                            categorised as                                                                        have been             models (analyses) supply base,                                                       commodity/purchase
                                                                                                                                                                                                                            strategic and non-                                                                    carried out                             supplier                                                           family strategies
                                                                                                                                                                                                                            strategic                                                                                                                     performance and
                                                                                                                                                                                                                                                                                                                                                          initiatives to bring
                                                                                                                                                                                                                                                                                                                                                          about
                                                                                                                                                                                                                                                                                                                                                          improvements
                                                3.7 Supply base               Plan to improve the supplier base by taking specific measures.                                                                                No or few                                                        Supply base                                Differentiated    Improvement          Clear
                                                    development                                                                                                                                                             initiatives for                                                  development and                            supplier base     programmes are in understanding of
                                                                                                                                                                                                                            supply base                                                      leveraging plan                            management        place                current and
                                                                                                                                                                                                                            development and                                                  based on                                   process based on                       future
                                                                                                                                                                                                                            leveraging                                                       supplier                                   procurement                            capacities/skills
                                                                                                                                                                                                                                                                                             assessment                                 models                                 of suppliers on
                                                                                                                                                                                                                                                                                             system                                                                            the basis of
                                                                                                                                                                                                                                                                                                                                                                               regular
                                                                                                                                                                                                                                                                                                                                                                               assessment
                                                3.8 Differentiated policy Degree to which the purchasing policy addresses the differences between the various suppliers. Does the purchasing policy                                              Policy does not                                                                        Differentiated
                                                                          recognise that there are different types of suppliers (e.g. on the basis of Kraljic) and that they need to be treated differently.                                     address the                                                                            purchasing policy
                                                                                                                                                                                                                                                 difference                                                                             on the basis of
                                                                                                                                                                                                                                                 between strategic                                                                      differentiation
                                                                                                                                                                                                                                                 and non-strategic                                                                      using
                                                                                                                                                                                                                                                 suppliers or does                                                                      procurement
                                                                                                                                                                                                                                                 so to a limited                                                                        models
                                                                                                                                                                                                                                                 extent only


                                                3.9 Documentation             Documenting of decisions, analyses carried out on the basis of procurement models and/or research related to supplier base                                         Little or no                                                     Documentation of      Documented proof     Evidence that the                          Documented
                                                                              development                                                                                                                                                        evidence of a                                                    analyses in the       of differentiated    approach is                                purchasing
                                                                                                                                                                                                                                                 differentiated                                                   form of               strategy towards     yielding results                           market research
                                                                                                                                                                                                                                                 policy for                                                       purchasing            suppliers            and objectives are
                                                                                                                                                                                                                                                 strategic and non-                                               models available                           being achieved
                                                                                                                                                                                                                                                 strategic
                                                                                                                                                                                                                                                 suppliers.
                                                3.1 Communication             The degree to which communication takes place on the supplier base.                                                                                                                     Little evidence of                                                                     Communication
                                                0                                                                                                                                                                                                                     formal                                                                                 about performance
                                                                                                                                                                                                                                                                      communication                                                                          with suppliers and
                                                                                                                                                                                                                                                                      about the                                                                              discussion of
                                                                                                                                                                                                                                                                      supplier base                                                                          improvement
                                                                                                                                                                                                                                                                      with                                                                                   programmes
                                                                                                                                                                                                                                                                      stakeholders.
                                                3.1 Legislation and           Is there evidence of compliance with legislation and regulations such as EU tendering guidelines (appropriate and in accordance               No evidence of       Some evidence                                                    Evidence of                                                     Evaluation of
                                                1   regulations               with the law) when selecting and entering into contracts with suppliers. With regards European Tender Regulations, prior                      attention to         of attention to                                                  compliance with                                                 compliance with
                                                                              reporting, observance of the correct procedure and reporting of the award result are of particular importance.                                legislation and      legislation and                                                  legislation and                                                 legislation and
                                                                                                                                                                                                                            regulations          regulations                                                      regulations                                                     regulations
Summary   The process         Supplier             There is a formal,   As 2, but a            As 3, but with a   As 4, but the      As 5, but with      As 6, but an           As 7, and there is    As 8, but with the   There is a
          does not apply to   selection is         documented           simple supplier        supplier           supply base has    clear evidence of   advanced supplier      a formally            opportunity to       differentiated strategy
          the organisation    based on price       supplier selection   measurement            measurement        been extensively   a differentiated    measurement            documented            invest time and      for each
          or part of the      and availability.    process based        system is used to      system and a       analysed on the    supply base         system is also         process for           resources in         commodity/purchase
          organisation.       There are no         on the current       measure at least       simple supplier    basis of           management          used. This system      supplier selection    fundamental          family (at least score
                              initiatives for      requirements and     the quality and        qualification      purchasing         process. This is    covers both            based on future       supplier market      7 in element 2) for
                              supply base          capacities of the    delivery reliability   system that        turnover and       based on            current products       requirements. In      research (starting   the purposes of
                              development and      organisation.        of strategic           supports the       purchasing risk.   analyses drawn      and a new product      addition, regular     with a good          supply base
                              leveraging, or       Little or no         suppliers. Little      supply base        Documentation is   from procurement    and process            assessment of all     understanding of     development and
                              supplier selection   evidence of a        evidence of            development and    available in the   models.             development            strategic             organisational       leveraging and to
                              is based to a        differentiated       formal                 leveraging plan.   form of analyses   Documented proof    process. The           suppliers takes       requirements and     maximise the
                              limited extent on    policy for           communication                             based on           of differentiated   criteria have been     place (e.g.           the supply base).    performance of the
                              the qualitative      strategic and non-   on this subject                           procurement        strategy and        weighted in            assessment of         The planning         correct number and
                              perception of        strategic            with                                      models. Little     practice towards    accordance with        capacity and          and                  type of suppliers.
                              suppliers'           suppliers. Ad hoc    stakeholders.                             evidence that      suppliers.          the organisation's     updating the          implementation
                              performance and      supplier market                                                differentiation                        policy, multi-         supplier's profile)   of purchasing
                              a basic              research takes                                                 between                                disciplinary           with the aim of       market research
                              evaluation of        place. Some                                                    suppliers takes                        involvement and        obtaining and         has been clearly
                              costs and            evidence of                                                    place on the                           objective              keeping a clear,      documented.
                              purchasing risks.    attention to                                                   basis of these                         measurements.          up to date picture
                              Suppliers are        legislation and                                                analyses. There                        There is evidence      of the supplier
                              categorised as       regulations.                                                   is evidence of                         that the approach      and his current
                              strategic or non-                                                                   compliance with                        is yielding results    and future
                              strategic. No                                                                       legislation and                        and objectives are     capacity and
                              evidence of                                                                         regulations.                           being achieved.        skills (in relation
                              attention to                                                                                                               This information is    to the current and
                              legislation and                                                                                                            communicated to        future
                              regulations.                                                                                                               suppliers and          requirements of
                                                                                                                                                         programmes for         the organisation).
                                                                                                                                                         improvement are        Evaluation of
                                                                                                                                                         regularly              compliance with
                                                                                                                                                         discussed. The         legislation and
                                                                                                                                                         following              regulations.
                                                                                                                                                         information about
                                                                                                                                                         current
                                                                                                                                                         requirements and
                                                                                                                                                         skills is available
                                                                                                                                                         to all strategic
                                                                                                                                                         suppliers and the
                                                                                                                                                         main parties
                                                                                                                                                         involved: status of
                                                                                                                                                         the supply base,
                                                                                                                                                         supplier
                                                                                                                                                         performance and
                                                                                                                                                         initiatives to bring
                                                                                                                                                         about
                                                                                                                                                         improvements.
Strategic process 4
Developing and managing strategic supplier alliances
General description                                     Aspects               Notes                                                                                                                                      0 (N/A)               1                   2                     3                    4                    5                    6                     7                   8                   9                      10
Developing, managing and improving alliances        4.1 Procurement           Relates to descriptions of the requirement for and definition of supplier alliances included in the purchasing policy (strategic or                     There is a formal
with strategic suppliers based on a professional,       policy                non-strategic). The definition includes terms such as mutual dependence and establishment of mutual trust                                               definition in the
transparent approach.                                                                                                                                                                                                                 procurement
                                                                                                                                                                                                                                      policy stating the
                                                                                                                                                                                                                                      suppliers with
                                                                                                                                                                                                                                      whom a strategic
                                                                                                                                                                                                                                      alliance should
                                                                                                                                                                                                                                      be formed and/or
                                                                                                                                                                                                                                      developed.

                                                    4.2 Evaluation            Formal process in place for intermediate evaluations of the criteria and objectives for each supplier relationship in accordance                        There is a formal                                                                                                               Open book policy                        Clear evidence of
                                                        process               with the purchasing plan. This process also covers contract administration and contract management. Contract administration                             process for                                                                                                                     to share cost                           achievement of
                                                                              covers the definition, storage and updating of contract data in order to highlight and implement specific actions. Contract                             recording the                                                                                                                   calculations and                        goals and
                                                                              management refers to the optimum utilisation of the supplied products and services that are part of 1 contract                                          criteria and                                                                                                                    cost breakdowns                         improvement in
                                                                                                                                                                                                                                      objectives for                                                                                                                                                          results
                                                                                                                                                                                                                                      each alliance in
                                                                                                                                                                                                                                      accordance with
                                                                                                                                                                                                                                      the procurement
                                                                                                                                                                                                                                      plan and the
                                                                                                                                                                                                                                      organisation's
                                                                                                                                                                                                                                      objectives.
                                                    4.3 Documentation         Documentation of decision making processes with respect to selection and contracting to suppliers                                                                            Documented and       Documentation                                                                                             Clear evidence of
                                                                                                                                                                                                                                                           structured           showing that a                                                                                            an ambitious
                                                                                                                                                                                                                                                           process for          supplier alliance                                                                                         agenda for
                                                                                                                                                                                                                                                           identifying,         programme is                                                                                              improvements
                                                                                                                                                                                                                                                           assessing and        being developed
                                                                                                                                                                                                                                                           selecting
                                                                                                                                                                                                                                                           potential
                                                                                                                                                                                                                                                           suppliers
                                                    4.4 Collaboration with The way in which collaboration with (critical) strategic suppliers takes place                                                                                                  Little evidence of   If relevant,           Senior              If applicable, the   Joint terms of        Costs analysed      Continuous                                Formal agreement
                                                        supplier                                                                                                                                                                                           joint formulation    contracts are in       management          strategic supplier   reference have        in conjunction      evaluation of the                         and mutual plans for
                                                                                                                                                                                                                                                           of objectives        place for most         from both sides     relationship has     been formulated       with supplier.      alliance in the                           the future in the area
                                                                                                                                                                                                                                                                                strategic suppliers    are involved in     been integrated      for current           Open book policy    light of the                              of technology,
                                                                                                                                                                                                                                                                                                       developing and      into the "Product    projects. Some        in order to share   intended                                  objectives and
                                                                                                                                                                                                                                                                                                       managing            process              objectives have       cost structure      objectives                                strategies. Open
                                                                                                                                                                                                                                                                                                       alliances. Role     innovation (PPI)"    been defined          and calculations                                              sharing of information
                                                                                                                                                                                                                                                                                                       separation takes    process              jointly and there     across the entire
                                                                                                                                                                                                                                                                                                       place and                                is a joint planning   value chain
                                                                                                                                                                                                                                                                                                       purchasing                               process. No
                                                                                                                                                                                                                                                                                                       expertise has a                          evidence that
                                                                                                                                                                                                                                                                                                       separate role                            strategies for the
                                                                                                                                                                                                                                                                                                       within the                               future are geared
                                                                                                                                                                                                                                                                                                       relationship.                            to one another

                                                    4.5 Improvement           Programme to develop supplier alliances and performance, including integral cost analyses and benchmarking                                                                                                               Joint (with                                                    Integral costs      Ambitious joint     Joint (with
                                                        programmes                                                                                                                                                                                                                                     suppliers)                                                     and processes       (with supplier)     supplier) training
                                                                                                                                                                                                                                                                                                       improvement                                                    have been           agenda for          programme has
                                                                                                                                                                                                                                                                                                       programmes are                                                 analysed            improvements        been formulated
                                                                                                                                                                                                                                                                                                       still in their                                                                     has been drawn
                                                                                                                                                                                                                                                                                                       infancy                                                                            up on the basis
                                                                                                                                                                                                                                                                                                                                                                                          of benchmarking
                                                    4.6 Communication         Communication channels between the organisation and the supplier.                                                                                                            Little evidence of                          Supplier                                                                                                                     Open communication
                                                                                                                                                                                                                                                           existence of                                alliances                                                                                                                    with supplier
                                                                                                                                                                                                                                                           structured                                  occasionally form
                                                                                                                                                                                                                                                           communication                               an item on the
                                                                                                                                                                                                                                                           channels                                    agenda for the
                                                                                                                                                                                                                                                                                                       management
                                                                                                                                                                                                                                                                                                       team.
                                                                                                                                                                                                                                                                                                       Communication
                                                                                                                                                                                                                                                                                                       within the
                                                                                                                                                                                                                                                                                                       organisation
                                                                                                                                                                                                                                                                                                       takes place on a
                                                                                                                                                                                                                                                                                                       formal basis
                                                    4.7 Legislation and       Is there evidence that legislation and regulations are sufficiently taken into account when developing and managing supplier                            No evidence of       Some evidence                                                   Evidence of                                                   Evaluation of
                                                        regulations           alliances?                                                                                                                                              attention to         of attention to                                                 compliance with                                               compliance with
                                                                                                                                                                                                                                      legislation and      legislation and                                                 legislation and                                               legislation and
                                                                                                                                                                                                                                      regulations          regulations                                                     regulations                                                   regulations
Summary                                                                                                                                                                                                             The process       There is a formal    There is a           As 2, and              As 3, and senior    As 4, (if            As 5, joint terms     As 6, the integral As 7, there is       As 8, a joint (with   As 9, formal
                                                                                                                                                                                                                    does not apply to definition in the    documented and       contracts are          management          applicable) the      of reference have     costs and          clear evidence       supplier) training    agreement and
                                                                                                                                                                                                                    the organisation procurement           structured           available (if          from both sides     strategic supplier   been formulated       processes have that an ambitious        programme has         mutual plans for the
                                                                                                                                                                                                                    or part of the    policy stating the   process for          relevant) for most     are involved in     relationship has     for current           been analysed      joint (with          been formulated.      future in the area of
                                                                                                                                                                                                                    organisation.     suppliers with       identifying,         strategic suppliers,   developing and      been integrated      projects. Some        jointly. Open      supplier) agenda     Clear evidence of     technology,
                                                                                                                                                                                                                                      whom a strategic     assessing and        including              managing            into the "Product    objectives have       book policy to     for improvements     achievement of        objectives and
                                                                                                                                                                                                                                      alliance should      selecting            documentation          alliances. Role     process              been defined          share cost         has been drawn       goals and             strategies.
                                                                                                                                                                                                                                      be formed and/or     potential            showing that a         separation takes    innovation (PPI)"    jointly and there     breakdowns and up on the basis          improvement in        Information on future
                                                                                                                                                                                                                                      developed. There     (strategic)          supplier alliance      place and           process. There is    is a joint planning   calculations       of benchmarking.     results.              products and
                                                                                                                                                                                                                                      is a formal          suppliers based      programme is           purchasing          evidence of          process. No           across the whole Continuous                                   technical
                                                                                                                                                                                                                                      process for          on defined           being developed.       expertise has a     compliance with      evidence that         supply chain.      evaluation of the                          developments are
                                                                                                                                                                                                                                      recording the        criteria (as                                separate role       legislation and      strategies for the                       alliance in the                            openly shared.
                                                                                                                                                                                                                                      criteria and         defined in 1.).                             within the          regulations.         future are geared                        light of the
                                                                                                                                                                                                                                      objectives for       There is little                             relationship.                            to one another.                          intended
                                                                                                                                                                                                                                      each alliance in     evidence of the                             Supplier                                                                          objectives.
                                                                                                                                                                                                                                      accordance with      existence of                                alliances                                                                         Evaluation of
                                                                                                                                                                                                                                      the procurement      structured                                  occasionally form                                                                 compliance with
                                                                                                                                                                                                                                      plan and the         channels of                                 an item on the                                                                    legislation and
                                                                                                                                                                                                                                      organisation's       communication                               agenda for the                                                                    regulations takes
                                                                                                                                                                                                                                      objectives. No       and the joint                               management                                                                        place.
                                                                                                                                                                                                                                      evidence of          formulation of                              team and joint
                                                                                                                                                                                                                                      attention to         objectives. Some                            (with suppliers)
                                                                                                                                                                                                                                      legislation and      evidence of                                 improvement
                                                                                                                                                                                                                                      regulations.         attention to                                programmes are
                                                                                                                                                                                                                                                           legislation and                             still in their
                                                                                                                                                                                                                                                           regulations.                                infancy.
                                                                                                                                                                                                                                                                                                       Communication
                                                                                                                                                                                                                                                                                                       between the
                                                                                                                                                                                                                                                                                                       various levels in
                                                                                                                                                                                                                                                                                                       the organisation
                                                                                                                                                                                                                                                                                                       is organised on a
                                                                                                                                                                                                                                                                                                       formal basis.
accordance with
the procurement
plan and the
organisation's
objectives. No
evidence of
attention to
legislation and
regulations.
Strategic process 5
Optimisation of product/process innovation and development
General description                                  Aspects                  Notes                                                                                                                                   0 (N/A)           1                    2                   3                    4                 5                   6                     7                   8                   9                     10
Making the most effective use of the knowledge   5.1 Supplier market          Research into the supplier market and the utilisation of technical know-how available in the market.                                                                                       In-depth                                                                                                                                     Extensive supplier
available in the market for the purposes of          research                                                                                                                                                                                                            knowledge of                                                                                                                                 market research,
developing new products and processes.                                                                                                                                                                                                                                   suppliers market                                                                                                                             ongoing analysis of
                                                                                                                                                                                                                                                                                                                                                                                                                      relevant sectors of
                                                                                                                                                                                                                                                                                                                                                                                                                      industry
                                                 5.2 PPI policy and           PPI = product/process innovation. A PPI policy is in place. Role of purchasing described/defined in PPI policy. Policy also                       No or limited        Explicit decision
                                                     procedures               indicates how specific client requirements and needs should be handled.                                                                           application of PPI   making on
                                                                                                                                                                                                                                policy and           innovation or
                                                                                                                                                                                                                                procedures           development
                                                                                                                                                                                                                                                     projects
                                                 5.3 Purchasing               Employee involvement in purchasing function when creating products and services                                                                   Role of              Purchasing
                                                     involvement                                                                                                                                                                purchasing and       involved in PPI
                                                                                                                                                                                                                                suppliers is         from (pre)
                                                                                                                                                                                                                                defined in PPI       development
                                                                                                                                                                                                                                policy (if           phase
                                                                                                                                                                                                                                available)
                                                 5.4 Supplier selection       Supplier selection in line with PPI policy                                                                                                                                                 Selection of                                                                                                                                 Overview of strategic
                                                                                                                                                                                                                                                                         suppliers based                                                                                                                              suppliers available
                                                                                                                                                                                                                                                                         on requirements                                                                                                                              for each technology
                                                                                                                                                                                                                                                                         defined in                                                                                                                                   cluster
                                                                                                                                                                                                                                                                         strategic process
                                                                                                                                                                                                                                                                         2 and in line with
                                                                                                                                                                                                                                                                         policy and project

                                                 5.5 Evaluation of supplier Evaluation of supplier processes                                                                                                                                                             More thorough
                                                     processes                                                                                                                                                                                                           assessment of
                                                                                                                                                                                                                                                                         suppliers'
                                                                                                                                                                                                                                                                         processes only if
                                                                                                                                                                                                                                                                         necessary
                                                 5.6 Evaluation of supplier Evaluation of supplier performance on the basis of written agreements.                                                                                                                                                                                                       Supplier                                 Formal
                                                     performance                                                                                                                                                                                                                                                                                         performance is                           evaluation
                                                                                                                                                                                                                                                                                                                                                         measured and                             process for
                                                                                                                                                                                                                                                                                                                                                         compared                                 assessing
                                                                                                                                                                                                                                                                                                                                                         against                                  development
                                                                                                                                                                                                                                                                                                                                                         expectations.                            projects with
                                                                                                                                                                                                                                                                                                                                                         Because it is                            suppliers
                                                                                                                                                                                                                                                                                                                                                         difficult to assess
                                                                                                                                                                                                                                                                                                                                                         innovative
                                                                                                                                                                                                                                                                                                                                                         aspects, an
                                                                                                                                                                                                                                                                                                                                                         advanced
                                                                                                                                                                                                                                                                                                                                                         supplier
                                                                                                                                                                                                                                                                                                                                                         assessment
                                                                                                                                                                                                                                                                                                                                                         system is
                                                                                                                                                                                                                                                                                                                                                         required to
                                                                                                                                                                                                                                                                                                                                                         demonstrate
                                                                                                                                                                                                                                                                                                                                                         achievement of
                                                                                                                                                                                                                                                                                                                                                         goals and
                                                                                                                                                                                                                                                                                                                                                         improvement in
                                                                                                                                                                                                                                                                                                                                                         results

                                                 5.7 Corrective action        Planning and implementation of corrective action on the basis of supplier performance evaluation results                                                                                                                                                                   Corrective                               Programmes for
                                                                                                                                                                                                                                                                                                                                                         measures                                 improvement in
                                                                                                                                                                                                                                                                                                                                                         planned and                              the future are
                                                                                                                                                                                                                                                                                                                                                         implemented                              defined on the
                                                                                                                                                                                                                                                                                                                                                                                                  basis of
                                                                                                                                                                                                                                                                                                                                                                                                  evaluation
                                                 5.8 Decision making          Decision making process on how to integrate suppliers in the innovation process                                                                                                                                 Formal decision
                                                     process                                                                                                                                                                                                                                  making process
                                                                                                                                                                                                                                                                                              to determine the
                                                                                                                                                                                                                                                                                              best time and
                                                                                                                                                                                                                                                                                              way to involve
                                                                                                                                                                                                                                                                                              the supplier in
                                                                                                                                                                                                                                                                                              the process
                                                 5.9 Project objectives       Existence of project objectives (incl. milestones)                                                                                                                                                                               Clear project
                                                                                                                                                                                                                                                                                                               objectives that
                                                                                                                                                                                                                                                                                                               have been
                                                                                                                                                                                                                                                                                                               translated into
                                                                                                                                                                                                                                                                                                               purchasing and
                                                                                                                                                                                                                                                                                                               supplier
                                                                                                                                                                                                                                                                                                               objectives
                                                 5.1 Collaboration with       Collaboration with supplier including contents of contract (confidentiality statement, intellectual property rights, etc.)                        Little of no                                                  Contract and     Development          If relevant,
                                                 0   supplier                                                                                                                                                                   evidence of                                                   terms of         contracts, in        physical
                                                                                                                                                                                                                                supplier                                                      reference have   which objectives     presence of the
                                                                                                                                                                                                                                integration into                                              been drawn up to for the supplier     suppliers'
                                                                                                                                                                                                                                product process                                               a limited extent have been            developers in the
                                                                                                                                                                                                                                innovation (PPI)                                                               formulated, are in   organisation's
                                                                                                                                                                                                                                                                                                               place                development
                                                                                                                                                                                                                                                                                                                                    department
                                                 5.1 Communication            Communication on improving product and process innovation and development with suppliers and other disciplines within the                                                                                                                             Regular                                    Open book policy                       Discussions on
                                                 1                            organisation                                                                                                                                                                                                                                          meetings                                   on sharing of                          direction of joint
                                                                                                                                                                                                                                                                                                                                    planned. Multi-                            knowledge and                          technological
                                                                                                                                                                                                                                                                                                                                    disciplinary and                           development                            research
                                                                                                                                                                                                                                                                                                                                    multi-level                                plans with
                                                                                                                                                                                                                                                                                                                                    communication                              suppliers

                                                 5.1 Multi-disciplinary       Collaboration with other disciplines within the organisation                                                                                                                                                                                          Project objectives
                                                 2   approach                                                                                                                                                                                                                                                                       defined across
                                                                                                                                                                                                                                                                                                                                    boundaries of
                                                                                                                                                                                                                                                                                                                                    different
                                                                                                                                                                                                                                                                                                                                    disciplines

                                                 5.1 Use of IT systems        Interlinked internal/external information systems to facilitate the exchange of information and to save time and money (financial IT,                                                                                                                                                                               Interlinked
                                                 3                            general information and e-procurement systems)                                                                                                                                                                                                                                                                      internal/external
                                                                                                                                                                                                                                                                                                                                                                                                  information
                                                                                                                                                                                                                                                                                                                                                                                                  systems (EDI,
                                                                                                                                                                                                                                                                                                                                                                                                  databases) to
                                                                                                                                                                                                                                                                                                                                                                                                  facilitate the
                                                                                                                                                                                                                                                                                                                                                                                                  exchange of
                                                                                                                                                                                                                                                                                                                                                                                                  information to
                                                                                                                                                                                                                                                                                                                                                                                                  save time and
                                                                                                                                                                                                                                                                                                                                                                                                  money
          5.1 Legislation and   Is there evidence that legislation and regulations are taken into account when optimising product and process innovation and                       No evidence of      Some evidence        Explicit attention                       Checks for                                                     Effective
          4   regulations       development (appropriate and in accordance with the law)?                                                                                          attention to        of attention to      to compliance                            compliance with                                                compliance with
                                                                                                                                                                                   legislation and     legislation and      with legislation                         legislation and                                                legislation and
                                                                                                                                                                                   regulations         regulations          and regulations                          regulations                                                    regulations
                                                                                                                                                                                                                                                                     embedded in the                                                achieved by
                                                                                                                                                                                                                                                                     procedures                                                     means of
                                                                                                                                                                                                                                                                                                                                    analysis and
                                                                                                                                                                                                                                                                                                                                    evaluation of
                                                                                                                                                                                                                                                                                                                                    procedures
Summary                                                                                                                                                        The process         Little or no        As 1, explicit       As 2, there is a     As 3, there is a    As 4, clear          As 5, and regular     As 6, the           As 7, an open       As 8, interlinked   As 9, an overview of
                                                                                                                                                               does not apply to   evidence of         decision making      good knowledge       formal decision     project objectives   meetings have         supplier's          book policy with    internal/external   strategic suppliers is
                                                                                                                                                               the organisation    supplier            on innovation or     of the suppliers     making process      have been            been planned.         performance is      regards to          information         available for each
                                                                                                                                                               or part of the      integration into    development          market and           to determine the    formulated           The project           measured and        sharing             systems (e.g.       technology cluster
                                                                                                                                                               organisation.       product process     projects takes       selection of the     best time and       (including time,     objectives have       compared            knowledge and       EDI, databases)     based on extensive
                                                                                                                                                                                   innovation (PPI).   place. There is      supplier is          way to involve      costs and quality)   been                  against             development         facilitate the      supplier market
                                                                                                                                                                                   No or limited use   clear evidence       explicitly based     the supplier in     that have been       communicated          expectations.       plans is pursued.   exchange of         research, continuous
                                                                                                                                                                                   of PPI policy and   that Purchasing      on the               PPI. Contract       translated into      and defined           Relevant            Effective           information to      research into relevant
                                                                                                                                                                                   procedures, in      is involved in PPI   requirements         and terms of        purchasing and       (more than just       corrective          compliance with     save time and       sectors of industry
                                                                                                                                                                                   which (if           from the (pre-       defined in           reference have      supplier             the product           measures are        legislation and     money. There is     and discussions
                                                                                                                                                                                   available) the      )development         process 2 and is     been drawn up to    objectives.          functionalities) at   planned and         regulations         a formal            about the direction of
                                                                                                                                                                                   role of             stage of projects.   in line with the     a limited extent    Development          various levels of     implemented.        achieved by         evaluation          joint technical
                                                                                                                                                                                   procurement and     Some evidence        policy and the       (as a minimum,      contracts have       the organisation      There is an         means of            process with        research.
                                                                                                                                                                                   suppliers is        of attention to      project. A more      confidentiality     been drawn up in     and beyond the        advanced            analysis and        suppliers for
                                                                                                                                                                                   described/define    legislation and      thorough             statements and      which the            boundaries of the     supplier            evaluation of       evaluating
                                                                                                                                                                                   d. No evidence of   regulations.         assessment of        guidelines          objectives for the   different             measurement         procedures.         development
                                                                                                                                                                                   attention to                             the suppliers'       relating to         supplier have        disciplines. If       system for                              projects and
                                                                                                                                                                                   legislation and                          processes only       intellectual        been formulated.     relevant,             supplier                                defining
                                                                                                                                                                                   regulations.                             takes place if       property rights).   Checks for           arrangements          performance in                          programmes for
                                                                                                                                                                                                                            necessary. There                         compliance with      are made for the      PPI (this is                            improvement in
                                                                                                                                                                                                                            is explicit                              legislation and      physical              because                                 the future.
                                                                                                                                                                                                                            attention to                             regulations for      presence of the       measuring
                                                                                                                                                                                                                            compliance with                          optimising           suppliers'            innovation is
                                                                                                                                                                                                                            legislation and                          product and          developers in the     difficult). Clear
                                                                                                                                                                                                                            regulations in                           process              organisation's        evidence of
                                                                                                                                                                                                                            order to optimise                        innovation and       development           achievement of
                                                                                                                                                                                                                            PPI.                                     development are      department.           goals and
                                                                                                                                                                                                                                                                     embedded in the                            improvement in
                                                                                                                                                                                                                                                                     procedures.                                results.
Strategic process 6
Supplier integration into the order fulfilment process
General description                                    Aspects              Notes                                                                                                                                    0 (N/A)                  1                  2                   3                   4                 5                    6                    7                    8                    9                    10
Coordinate/optimise internal and suppliers'        6.1 Supplier integration The integration of the supplier in the order fulfilment process to use this process to maximum effect.                                                  Little or no                                                 Supplier is
operational management, i.e. take contracted                                                                                                                                                                                        evidence of                                                  involved in
supplier processes into account in internal                                                                                                                                                                                         supplier                                                     process of
processes. This relates to the optimisation of all                                                                                                                                                                                  integration                                                  optimising
repetitive, operational processes (operational                                                                                                                                                                                                                                                   operational
purchasing). Optimisation is achieved by reducing                                                                                                                                                                                                                                                purchasing
turnaround times, using capacity to maximum
effect, improving collaboration within the
organisation, decision making processes and
communication.
                                                   6.2 Multi-disciplinary   Collaboration within the organisation, for example between those who define requirements, the finance department, logistics,                            Internal multi-                                                                                     Teams with client                         Forces joined        Best use of
                                                       collaboration        specific experts and purchasing, and collaboration between the purchasing department and suppliers in order to coordinate                               disciplinary                                                                                        and supplier                              and integrated       qualities and
                                                                            demand with the suppliers' capacity                                                                                                                     collaboration                                                                                       representatives                           across the entire    skills is made
                                                                                                                                                                                                                                                                                                                                                                                  supply chain to      throughout the
                                                                                                                                                                                                                                                                                                                                                                                  improve              entire supply
                                                                                                                                                                                                                                                                                                                                                                                  planning, stock      chain
                                                                                                                                                                                                                                                                                                                                                                                  levels, invoicing,
                                                                                                                                                                                                                                                                                                                                                                                  etc.
                                                   6.3 Communication          Formalisation of communication within the organisation, with suppliers and clients                                                                    Formal internal      Automated           Terms of            Communication                                               Information
                                                                                                                                                                                                                                    communication        (production         reference only      with (strategic)                                            system that
                                                                                                                                                                                                                                    structure            planning and)       discussed           suppliers on                                                enables the
                                                                                                                                                                                                                                                         coding system to    internally          (automated)                                                 exchange of
                                                                                                                                                                                                                                                         optimise internal                       requirement                                                 information
                                                                                                                                                                                                                                                         exchange of                             forecasts                                                   across the entire
                                                                                                                                                                                                                                                         information                             (demand)                                                    supply chain
                                                                                                                                                                                                                                                                                                                                                             including the
                                                                                                                                                                                                                                                                                                                                                             client (e.g. using
                                                                                                                                                                                                                                                                                                                                                             EDI)
                                                   6.4 Documentation          Recording of decisions taken with respect to the order fulfilment process and analyses that formed the background to these                                                                     Evidence that       Strategic                                                   Documentation of                          Evidence of
                                                                              decisions                                                                                                                                                                                      terms of            suppliers are                                               evaluation                                effective design
                                                                                                                                                                                                                                                                             reference have      clearly involved                                            process                                   of systems and
                                                                                                                                                                                                                                                                             been formulated     in planning                                                                                           processes to
                                                                                                                                                                                                                                                                                                                                                                                                       ensure maximum
                                                                                                                                                                                                                                                                                                                                                                                                       utilisation of
                                                                                                                                                                                                                                                                                                                                                                                                       qualities and
                                                                                                                                                                                                                                                                                                                                                                                                       skills in the
                                                                                                                                                                                                                                                                                                                                                                                                       supply chain

                                                   6.5 Planning process       Improvement of product/service delivery requirement planning                                                                                          Attempts to                                                  Requirement
                                                                                                                                                                                                                                    improve                                                      planning process
                                                                                                                                                                                                                                    requirement                                                  based on
                                                                                                                                                                                                                                    planning process                                             forecasts
                                                                                                                                                                                                                                    internally

                                                   6.6 Improvement plan       The extent to which the purchasing plan focuses on optimising the logistics process and reducing transaction costs, for example                                                                Terms of                               Proactive           Action and                                                     Focus on           Improvement
                                                                              by reducing turnaround times, decreasing the number of logistics process steps, reducing stock levels and order times                                                                          reference in                           process to          implementation                                                 effective design programme at world
                                                                                                                                                                                                                                                                             purchasing plan                        reduce the          plans to reduce                                                of systems and     class level
                                                                                                                                                                                                                                                                             to shorten                             number of steps     stock levels,                                                  processes and
                                                                                                                                                                                                                                                                             turnaround times,                      in the logistics    order times and                                                the use of e-tools
                                                                                                                                                                                                                                                                             etc.                                   process, the        turnaround times,                                              and other
                                                                                                                                                                                                                                                                                                                    number of           and to improve                                                 innovative forms
                                                                                                                                                                                                                                                                                                                    invoices, the       internal
                                                                                                                                                                                                                                                                                                                    amount of stock,    accounting
                                                                                                                                                                                                                                                                                                                    etc.                procedures
                                                   6.7 Evaluation process Assessing the actual situation and analysing the differences between the plan and the actual situation (including the financial                                                                                                                               Process for                                                                         Benchmarking of the
                                                                          plan in the budget)                                                                                                                                                                                                                                           evaluating results                                                                  entire supply chain

Summary                                                                                                                                                                                                         The process         There is little or   As 1, there is an   As 2, there is      As 3, there is     As 4, there is a    As 5, there is       As 6, an             As 7, forces are     As 8, there is       Benchmarking of the
                                                                                                                                                                                                                does not apply to   no evidence of       automated           evidence that       evidence that      proactive process   evidence that        information          joined and           clear evidence       entire supply chain
                                                                                                                                                                                                                the organisation    supplier             (production         terms of            (strategic)        to reduce the       teams with           system is in use     integrated across    that the best use    resulting in an
                                                                                                                                                                                                                or part of the      integration into     planning and)       reference have      suppliers have     number of steps     members from         that enables the     the entire supply    of qualities and     improvement
                                                                                                                                                                                                                organisation.       the order            coding system to    been formulated,    been integrated    in the logistics    the customer's       exchange of          chain                skills is made       programme at world
                                                                                                                                                                                                                                    fulfilment           optimise the        e.g. to shorten     in the             process, to         and the              information          (contractors/clien   throughout the       class level.
                                                                                                                                                                                                                                    process. There       internal            turnaround times    requirement        reduce the          supplier's side      across the whole     ts) to improve       entire supply
                                                                                                                                                                                                                                    are attempts to      exchange of         as part of the      planning           number of           have been            supply chain         planning, stock      chain by the
                                                                                                                                                                                                                                    improve the          information.        procurement plan    process.           invoices, the       formed to reduce     including the        levels, invoicing,   effective design
                                                                                                                                                                                                                                    requirement                              (only discussed     (Automated)        amount of stock,    stock levels,        client (e.g. using   etc.                 of systems and
                                                                                                                                                                                                                                    planning process                         internally).        forecasts are      etc.                order times and      EDI). The                                 processes and
                                                                                                                                                                                                                                    internally. There                                            exchanged with                         turnaround times,    evaluation                                the use of e-tools
                                                                                                                                                                                                                                    is a formal                                                  these suppliers.                       and to improve       process is also                           and other
                                                                                                                                                                                                                                    internal                                                     Suppliers are                          internal             documented.                               innovative forms.
                                                                                                                                                                                                                                    communication                                                also involved in                       accounting
                                                                                                                                                                                                                                    structure in                                                 the process of                         procedures, etc.
                                                                                                                                                                                                                                    which internal                                               optimising                             An action plan,
                                                                                                                                                                                                                                    multi-disciplinary                                           operational                            implementation
                                                                                                                                                                                                                                    teams are                                                    purchasing.                            plan and
                                                                                                                                                                                                                                    incorporated to                                                                                     procedure for
                                                                                                                                                                                                                                    agree with                                                                                          evaluating results
                                                                                                                                                                                                                                    suppliers the                                                                                       are in existence.
                                                                                                                                                                                                                                    demand
                                                                                                                                                                                                                                    determined by
                                                                                                                                                                                                                                    requirements.
Strategic process 7
Improving supplier performance and quality management
General description                                        Aspects             Notes                                                                                                                                   0 (N/A)                 1                    2                    3                     4                    5                    6                    7                   8                      9                       10
Buyers' reactive and pro-active/strategic activities   7.1 Existence of        Existence of a supplier performance improvement programme with or without the use of incentives (negative or positive)                                 Ad hoc initiatives                                                                                                                                                       Official ’zero
aimed at identifying opportunities for improvement         supplier                                                                                                                                                                   for supplier                                                                                                                                                             faults
and facilitating improvements in the supplier's            improvement                                                                                                                                                                improvement and                                                                                                                                                          programme’ for
performance and capacity.                                  programme                                                                                                                                                                  no or limited                                                                                                                                                            critical deliveries,
                                                                                                                                                                                                                                      programme for                                                                                                                                                            incl. incentives
                                                                                                                                                                                                                                      supplier
                                                                                                                                                                                                                                      improvement.

                                                       7.2 Monitoring of       Extent to which monitoring of the supplier performance improvement programme is structured/systematic.                                                 No or little                               Ad hoc and                                                                                               Pro-active                                   Joint training in order
                                                           improvement                                                                                                                                                                structured follow                          reactive follow-up                                                                                       approach and                                 to learn from one
                                                           programme                                                                                                                                                                  up of                                      of improvement                                                                                           managers                                     another
                                                                                                                                                                                                                                      improvement                                programmes only                                                                                          specifically
                                                                                                                                                                                                                                      initiatives                                                                                                                                         trained in
                                                                                                                                                                                                                                                                                                                                                                                          supplier
                                                                                                                                                                                                                                                                                                                                                                                          development in
                                                                                                                                                                                                                                                                                                                                                                                          the company
                                                       7.3 Supplier            Extent to which strategic suppliers have been assessed for relevant aspects (proportional) before entering into a contract.                            Strategic
                                                           certification       Suppliers who comply with the applicable definition in the purchasing policy are considered to be strategic suppliers.                                 suppliers have
                                                                                                                                                                                                                                      been assessed
                                                                                                                                                                                                                                      for relevant
                                                                                                                                                                                                                                      aspects
                                                                                                                                                                                                                                      (proportional)
                                                                                                                                                                                                                                      before entering
                                                                                                                                                                                                                                      into contracts
                                                       7.4 Supplier            The existence of a supplier performance assessment system (such as a vendor rating system) and evaluation of the measured                                                    Formal system        Identification of     Evidence a           Some audits          Audits and           Process control     Supplier             Advanced quality Supplier evaluations
                                                           performance         performance with respect to terms of reference and contracts with suppliers. Supplier audits and process studies to evaluate                                                 for simple           poor performance      working system       carried out on       process studies      system has been     assessments          measurement      are organised
                                                           evaluation          current and future skills/qualities. Regular analysis of purchasing data (contract, quantitative and qualitative analyses)                                                   supplier             (poor quality/late    that follows up      strategic            carried out on all   agreed with         carried out at       systems in use
                                                                                                                                                                                                                                                            performance          delivery)             corrective           suppliers            strategic            strategic           suppliers'           (to assess the
                                                                                                                                                                                                                                                            assessment                                 measures by the                           suppliers in order   suppliers           premises (quick      costs of 'non
                                                                                                                                                                                                                                                                                                       supplier (based                           to fully evaluate                        scans)               quality')
                                                                                                                                                                                                                                                                                                       on complaints                             current and
                                                                                                                                                                                                                                                                                                       and supplier                              future supplier
                                                                                                                                                                                                                                                                                                       measurement).                             competencies

                                                       7.5 Identification of   Extent to which corrective action is defined on the basis of the outcomes of the evaluation process. Collaboration with suppliers                                            Little evidence of                  Corrective                                                            Evidence that       Particular focus Targets defined             Improvement
                                                           corrective action   aimed at reducing costs.                                                                                                                                                     analysis of these                   measures by                                                           corrective          on the most      for suppliers               programme
                                                                                                                                                                                                                                                            results and plans                   supplier (on the                                                      measures have       important                                    (including terms of
                                                                                                                                                                                                                                                            for corrective                      basis of                                                              been planned (if    commodity/purch                              reference and follow-
                                                                                                                                                                                                                                                            action (by                          complaints and                                                        necessary)          ase families and                             up) set up jointly
                                                                                                                                                                                                                                                            supplier)                           supplier                                                                                  suppliers
                                                                                                                                                                                                                                                                                                assessment)
                                                       7.6 Communication       Communication with supplier and other parties involved within and outside the organisation on the results of not only the                                                    Little evidence of Feedback on      Communication               Visit to suppliers   This information                                              Targets
                                                                               evaluation of the supplier's performance, analyses and corrective action to be taken by the supplier, but also the organisation                                              these results      poor performance of internal                 to evaluate the      is documented,                                                communicated to
                                                                               strategy and purchasing objectives.                                                                                                                                          being fed back to                   complaints to               supplier and to      regularly updated                                             suppliers and
                                                                                                                                                                                                                                                            suppliers                           supplier on the             communicate the      and effectively                                               other parties
                                                                                                                                                                                                                                                                                                basis of                    organisation's       communicated to                                               involved
                                                                                                                                                                                                                                                                                                complaints                  strategy and         the main parties
                                                                                                                                                                                                                                                                                                procedure                   purchasing           involved
                                                                                                                                                                                                                                                                                                                            objectives

                                                       7.7 Complaints          The availability of a formal complaints procedure to enable complaints to be identified as efficiently as possible and to                                                                                               Formal                                                         Evaluation of
                                                           procedure           communicate on these matters with suppliers (complaints handling, claims, conflicts).                                                                                                                                   complaints                                                     complaints
                                                                                                                                                                                                                                                                                                       procedure has                                                  procedure
                                                                                                                                                                                                                                                                                                       been set up
                                                       7.8 Documentation       The existence of recorded information on the quality of the supplier's performance.                                                                                                                                                                               Information is       Statistical                              Evidence of
                                                                                                                                                                                                                                                                                                                                                 documented           evidence of the                          achievement of
                                                                                                                                                                                                                                                                                                                                                                      stability/compete                        goals and
                                                                                                                                                                                                                                                                                                                                                                      nce of these                             improvement in
                                                                                                                                                                                                                                                                                                                                                                      suppliers or                             results
                                                                                                                                                                                                                                                                                                                                                                      evidence that
                                                                                                                                                                                                                                                                                                                                                                      corrective
                                                                                                                                                                                                                                                                                                                                                                      measures have
                                                                                                                                                                                                                                                                                                                                                                      been planned
Summary                                                                                                                                                                                                            The process does   No or limited         As 1, there is a     As 2,                 As 3, a formal       As 4, visits to      As 5, there is       As 6, a process     As 7, the            As 8, an                As 9, supplier
                                                                                                                                                                                                                   not apply to the   programme for         formal system for    communication         complaints           suppliers are        evidence that the    control system      organisation         advanced quality        evaluations and joint
                                                                                                                                                                                                                   organisation or    supplier              simple               with suppliers        procedure has        arranged to          customer has         has been agreed     takes a proactive    measurement             training is organised
                                                                                                                                                                                                                   part of the        improvement. Ad       measurement of       takes place on an     been drawn up to     evaluate the         carried out audits   with strategic      approach to          system is in use.       to enable both sides
                                                                                                                                                                                                                   organisation.      hoc initiatives for   supplier             ad hoc basis in       communicate          supplier and to      and process          suppliers. There    supplier             As part of this,        to learn from one
                                                                                                                                                                                                                                      supplier              performance.         the case of poor      internal             communicate the      studies with all     is statistical      development.         the costs of ‘non       another and to draw
                                                                                                                                                                                                                                      improvement           There is little      performance           complaints to        organisation's       strategic            evidence of the     Efforts are          quality’ are            up a joint
                                                                                                                                                                                                                                      with no or little     evidence of these    (poor quality, late   suppliers as         strategy and         suppliers in order   stability/compete   directed in          measured and            improvement
                                                                                                                                                                                                                                      structured follow     results being fed    deliveries):          efficiently as       purchasing           to fully assess      nce of these        particular at the    targets are             programme
                                                                                                                                                                                                                                      up of                 back to suppliers    reactive supplier     possible. There is   objectives in a      the current and      suppliers or        most important       defined and             (including terms of
                                                                                                                                                                                                                                      improvement           with analysis and    improvement.          (evidence of) a      structured way. A    future               evidence that       commodity/purch      communicated to         reference and follow-
                                                                                                                                                                                                                                      initiatives. For      suggestions for                            working system       number of            competence of        corrective          ase families and     the relevant            up).
                                                                                                                                                                                                                                      strategic             corrective action.                         that follows up      strategic supplier   these suppliers.     measures have       suppliers. The       suppliers and the
                                                                                                                                                                                                                                      suppliers,                                                       corrective           audits are also      This information     been planned.       organisation has     most important
                                                                                                                                                                                                                                      relevant aspects                                                 measures by the      carried out.         is documented,       The complaints      employees who        parties involved.
                                                                                                                                                                                                                                      have been                                                        supplier (based                           regularly updated    procedure is        have been            There is an
                                                                                                                                                                                                                                      checked on the                                                   on complaints                             and effectively      evaluated.          specifically         official ’zero faults
                                                                                                                                                                                                                                      process side for                                                 and supplier                              communicated to                          trained for          programme’ for
                                                                                                                                                                                                                                      the purposes of                                                  measurement).                             the main parties                         supplier             critical deliveries.
                                                                                                                                                                                                                                      the contract                                                                                               involved.                                development.         Clear evidence of
                                                                                                                                                                                                                                      (including ISO,                                                                                                                                     Evaluation of        achievement of
                                                                                                                                                                                                                                      AQAP, audits).                                                                                                                                      suppliers takes      goals and
                                                                                                                                                                                                                                                                                                                                                                                          place on site (for   improvement in
                                                                                                                                                                                                                                                                                                                                                                                          example quick        results.
                                                                                                                                                                                                                                                                                                                                                                                          scans).
Strategic process 8
Strategic cost management
General description                                         Aspects            Notes                                                                                                                                0 (N/A)                 1                 2                      3                     4                5                         6                     7                     8                  9                      10
Total cost of ownership (TCO) = theory based            8.1 Cost improvement   Existence of cost improvement programmes                                                                                                            No cost           Management on          Promotion             Supplier          Task based                Structural use of                          Structured and      Systematic focus      Formal, structured
around the total cost involved in the entire life cycle     programme                                                                                                                                                              improvement       the basis of total     campaign for          contracts contain budget for all            various cost                               formally            on integral cost      and documented
of a product, i.e. not just the purchase price.                                                                                                                                                                                    programmes or     cost of ownership      employees and         clauses that      projects in PPI           models, e.g. to                            organised           reduction with        decision making
                                                                                                                                                                                                                                   straightforward                          multi-disciplinary    encourage                                   improve cost                               promotion           suppliers and         process for cost
                                                                                                                                                                                                                                   purchase price                           teams to generate     suppliers to                                structures                                 campaign to         clients               improvements that
                                                                                                                                                                                                                                   management                               cost saving ideas.    generate ideas                                                                         encourage                                 covers the entire
                                                                                                                                                                                                                                   with the focus on                                              and targets for                                                                        suppliers to                              supply chain
                                                                                                                                                                                                                                   (price)                                                        cost reduction                                                                         generate cost-
                                                                                                                                                                                                                                   negotiations and                                               (efficiency                                                                            saving ideas
                                                                                                                                                                                                                                   the effect of                                                  targets)
                                                                                                                                                                                                                                   volumes
                                                   8.2 Impact of sales         Impact of the sales market on costs management. For example, are the prevailing prices in the market taken into account when                                                                                                            Targets set in         Purchasing price
                                                       market                  defining targets.                                                                                                                                                                                                                       line with the          is in line with the
                                                       developments                                                                                                                                                                                                                                                    market                 market as a
                                                                                                                                                                                                                                                                                                                                              minimum
                                                   8.3 Evaluation process Evaluation of the differences between standards and actual costs.                                                                                                                                                                                                                         Measurement                               Task setting,
                                                                                                                                                                                                                                                                                                                                                                    and analysis of                          measurement
                                                                                                                                                                                                                                                                                                                                                                    results                                  and follow-up
                                                                                                                                                                                                                                                                                                                                                                                                             mechanisms in
                                                                                                                                                                                                                                                                                                                                                                                                             place
                                                   8.4 Selection               Use of cost models, including requesting and assessing quotations.                                                                                                       TCO procedure                                                                         Purchasing uses
                                                       procedures                                                                                                                                                                                       used for some                                                                         cost models
                                                                                                                                                                                                                                                        purchases
                                                   8.5 Multi-disciplinary      Collaboration with various disciplines within the organisation and with suppliers and clients                                                                                                Multi-disciplinary    Limited              Client defines                               Joint teams set      Collaboration       Multi-disciplinary    All suppliers and
                                                       collaboration                                                                                                                                                                                                        collaboration         consultation with    maximum price                                up to achieve        with supplier in    teams with            (external) clients are
                                                                                                                                                                                                                                                                            within the            supplier on cost     for a specific                               cost reductions      order to generate   supplier and          involved in decision
                                                                                                                                                                                                                                                                            organisation, but     reduction            product or                                   (supplier/purchas    cost saving ideas   (external) client     making process on
                                                                                                                                                                                                                                                                            little supplier                            service                                      ing organisation)                        involvement           cost improvements
                                                                                                                                                                                                                                                                            involvement.
                                                   8.6 Documentation           The presence of documents and other evidence to demonstrate the existence of specific activities                                                                                                              Little evidence of                               Evidence that       Evidence of cost-                          Evidence of           Decision making
                                                                                                                                                                                                                                                                                             consultation                                     purchasing price saving initiatives                            achievement of        process around cost
                                                                                                                                                                                                                                                                                             (brainstorming)                                  is in line with the and results                                goals and             improvements is
                                                                                                                                                                                                                                                                                             with suppliers on                                market                                                         improvement in        documented
                                                                                                                                                                                                                                                                                             cost reduction                                                                                                  results
                                                   8.7 Communication           Consultations on cost structures and cost reducing measures with the parties involved                                                                                                        The focus of     Little evidence of                                                     Brainstorming
                                                                                                                                                                                                                                                                            communication is consultation with                                                      sessions with
                                                                                                                                                                                                                                                                            internal         supplier                                                               current supplier
                                                                                                                                                                                                                                                                                                                                                                    and purchasing
                                                                                                                                                                                                                                                                                                                                                                    organisation with
                                                                                                                                                                                                                                                                                                                                                                    the aim of
                                                                                                                                                                                                                                                                                                                                                                    reducing costs
                                                   8.9 Use of specific         The way in which a specific financing method, such as the accounts method (non depreciation) is used in the non profit sector                       Specific methods                                                                                           Use of cost           Cost analysis
                                                       financing methods                                                                                                                                                           of funding are not                                                                                         models that take      takes into
                                                                                                                                                                                                                                   taken into                                                                                                 into account the      account specific
                                                                                                                                                                                                                                   account                                                                                                    specific              characteristics of
                                                                                                                                                                                                                                                                                                                                              characteristics of    funding
                                                                                                                                                                                                                                                                                                                                              funding               arrangements in
                                                                                                                                                                                                                                                                                                                                              arrangements          the not for profit
                                                                                                                                                                                                                                                                                                                                                                    sector
Summary                                                                                                                                                                                                        The process         No cost              As 1, the total     As 2, there is also   As 3, supplier       As 4, there is         As 5, structural      As 6, it is clear    As 7, there is a    As 8, multi-          As 9, there is a
                                                                                                                                                                                                               does not apply to   improvement          cost of ownership   a promotion           contracts contain    clear evidence of      use is made of        that joint           structured and      disciplinary          formal, structured
                                                                                                                                                                                                               the organisation    programmes or        (TCO) principle     campaign for          clauses that         task setting (in       various cost          brainstorming        formally            teams                 and documented
                                                                                                                                                                                                               or part of the      straightforward      is used (e.g. in    employees and         encourage or         budgets) for PPI       models to select      sessions take        organised           systematically        decision making
                                                                                                                                                                                                               organisation        purchase price       supplier            multi-disciplinary    force suppliers to   costs for all          suppliers and         place (between       promotion           work on integral      process for cost
                                                                                                                                                                                                                                   management           selection). The     teams to generate     generate ideas       projects. A            improve cost          the current          campaign to         cost reduction        improvements that
                                                                                                                                                                                                                                   with the focus on    TCO procedure       cost saving ideas     and targets for      maximum price          structures. The       supplier and the     encourage           with the              covers the entire
                                                                                                                                                                                                                                   (price)              is also formally    (internal             cost reduction       that can be paid       purchase price is     purchasing           suppliers to        involvement of        supply chain and in
                                                                                                                                                                                                                                   negotiations and     used for            programmes).          (e.g. efficiency     for a specific         (and can be           organisation)        generate cost-      suppliers and         which all suppliers
                                                                                                                                                                                                                                   the effect of        important           There is little       targets). Limited    service or             shown to be) at       with the aim of      saving ideas.       (external) clients.   involved and
                                                                                                                                                                                                                                   volumes. Specific    products and/or     reason to believe     evidence of joint    product is             least in line with    reducing costs.                          There are             (external) clients are
                                                                                                                                                                                                                                   methods of           'special'           that suppliers are    brainstorming        calculated on the      the market. Costs     There is                                 mechanisms for        taken into
                                                                                                                                                                                                                                   funding are not      purchases/projec    involved in           sessions             basis of a price       are analysed          evidence of cost-                        task setting,         consideration.
                                                                                                                                                                                                                                   taken into           ts (e.g. capital    formulating ideas.    (between the         that is in line with   using cost            saving initiatives                       measurement
                                                                                                                                                                                                                                   account.             purchases).         The focus of          supplier and the     the market.            models that take      and results.                             and follow-up.
                                                                                                                                                                                                                                                                            communication is      procuring                                   into account the      Analysis of costs,                       Clear evidence of
                                                                                                                                                                                                                                                                            internal.             organisation)                               specific              taking into                              achievement of
                                                                                                                                                                                                                                                                                                  with the aim of                             characteristics of    account the                              goals and
                                                                                                                                                                                                                                                                                                  reducing costs.                             funding               specific                                 improvement in
                                                                                                                                                                                                                                                                                                                                              arrangements.         characteristics of                       results.
                                                                                                                                                                                                                                                                                                                                                                    funding
                                                                                                                                                                                                                                                                                                                                                                    arrangements in
                                                                                                                                                                                                                                                                                                                                                                    the not for profit
                                                                                                                                                                                                                                                                                                                                                                    sector.
Support process 1
Strategic planning process and policy for procurement
General description                                      Aspects            Notes                                                                                                                                   0 (N/A)           1                    2                   3                    4                    5                     6                    7                   8                   9                    10
Purchasing policy reflects strategic objectives with 9.1 Team composition   Functional or multi-disciplinary team that takes the decision.                                                                                    Procurement                                                                                                                  Procurement
respect to purchasing. The purchasing plan                                                                                                                                                                                    plan drawn up                                                                                                                policy has been
(purchasing tactics) revolves around the activities                                                                                                                                                                           exclusively by                                                                                                               translated into
needed to realise these strategic objectives.                                                                                                                                                                                 purchasing.                                                                                                                  approved
                                                                                                                                                                                                                                                                                                                                                           procurement
                                                                                                                                                                                                                                                                                                                                                           plans agreed in
                                                                                                                                                                                                                                                                                                                                                           multi-disciplinary
                                                                                                                                                                                                                                                                                                                                                           sessions.
                                                 9.2 Documentation          Documentation of procurement policy.                                                                                                                                                       The purchasing                                                  Evidence of self    The procurement      Evidence that
                                                                                                                                                                                                                                                                       objectives and                                                  evaluation          policy is defined    outcomes of
                                                                                                                                                                                                                                                                       the relationship                                                                    in the general       discussions are
                                                                                                                                                                                                                                                                       with the                                                                            policy.              used to update
                                                                                                                                                                                                                                                                       organisation's                                                                                           the procurement
                                                                                                                                                                                                                                                                       objectives are                                                                                           policy.
                                                                                                                                                                                                                                                                       explicitly stated
                                                                                                                                                                                                                                                                       in formal reports.
                                                 9.3 Understanding of       Developing an understanding of the market by researching the suppliers in the market and the products/services they supply.                                            Good                                                                                                                                             Evaluation of the
                                                     supplier market                                                                                                                                                                               understanding of                                                                                                                                 risk in the
                                                                                                                                                                                                                                                   relationships and                                                                                                                                suppliers market
                                                                                                                                                                                                                                                   opportunities in                                                                                                                                 forms an integral
                                                                                                                                                                                                                                                   the current                                                                                                                                      part of the
                                                                                                                                                                                                                                                   suppliers market.                                                                                                                                procurement
                                                                                                                                                                                                                                                                                                                                                                                                    policy and the
                                                                                                                                                                                                                                                                                                                                                                                                    procurement
                                                                                                                                                                                                                                                                                                                                                                                                    plans.
                                                 9.4 Supplier               Differentiation between various suppliers and in approach to suppliers (e.g. evaluation of performance and improving purchasing).                 No system for        System for                                                                          System for
                                                     differentiation                                                                                                                                                          distinguishing       distinguishing                                                                      differentiating
                                                                                                                                                                                                                              between              between                                                                             between
                                                                                                                                                                                                                              suppliers (using     suppliers (using                                                                    suppliers is in
                                                                                                                                                                                                                              procurement          procurement                                                                         use (using
                                                                                                                                                                                                                              models) or to        models) and to                                                                      procurement
                                                                                                                                                                                                                              indicate the         indicate the                                                                        models) and for
                                                                                                                                                                                                                              approach             approach                                                                            indicating the
                                                                                                                                                                                                                              required for         required for                                                                        approach
                                                                                                                                                                                                                              different            different                                                                           required for
                                                                                                                                                                                                                              suppliers.           suppliers.                                                                          different
                                                                                                                                                                                                                                                                                                                                       suppliers.
                                                 9.5 Communication          Communication of procurement policy to all parties involved.                                                                                                                                                                         Purchasing                                Commitment           Relevant parts of
                                                                                                                                                                                                                                                                                                                 policy                                    (support) for the    the procurement
                                                                                                                                                                                                                                                                                                                 communicated to                           procurement          policy are
                                                                                                                                                                                                                                                                                                                 internal                                  policy is actively   communicated to
                                                                                                                                                                                                                                                                                                                 stakeholders/little                       sought and           and discussed
                                                                                                                                                                                                                                                                                                                 evidence of                               obtained from the    with strategic
                                                                                                                                                                                                                                                                                                                 communication                             lowest possible      suppliers.
                                                                                                                                                                                                                                                                                                                 of (parts of) the                         authorised body
                                                                                                                                                                                                                                                                                                                 procurement                               (the lowest level
                                                                                                                                                                                                                                                                                                                 policy to strategic                       that can take
                                                                                                                                                                                                                                                                                                                 suppliers.                                these decisions)
                                                                                                                                                                                                                                                                                                                                                           and the most
                                                                                                                                                                                                                                                                                                                                                           important
                                                                                                                                                                                                                                                                                                                                                           stakeholders.

                                                 9.6 Procurement plan       The procurement plan incorporating the tasks, responsibilities, procurement budget and the time parameters for the plan.                          No procurement       Procurement                              The procurement                            Some objectives                                                                  The outcomes of
                                                                                                                                                                                                                              plan is in place,    plan has been                            plan is                                    in the                                                                           benchmark analyses
                                                                                                                                                                                                                              or a limited plan    based on a                               implemented as                             procurement                                                                      are used when
                                                                                                                                                                                                                              has been drawn       detailed                                 part of a formal                           policy also focus                                                                drawing up the
                                                                                                                                                                                                                              up. It only          understanding of                         budgeting and                              on the internal                                                                  procurement policy
                                                                                                                                                                                                                              describes which      the suppliers                            evaluation                                 efficiency of the                                                                and procurement
                                                                                                                                                                                                                              activities need to   market and the                           process.                                   purchasing                                                                       plans. The
                                                                                                                                                                                                                              be carried out by    supplier base.                                                                      process in                                                                       procurement plan is
                                                                                                                                                                                                                              the different                                                                                            addition to                                                                      part of line
                                                                                                                                                                                                                              purchasing                                                                                               getting the most                                                                 organisation policies,
                                                                                                                                                                                                                              organisations.                                                                                           from supplier                                                                    not just the
                                                                                                                                                                                                                              Key policy                                                                                               alliances.                                                                       procurement plan.
                                                                                                                                                                                                                              principles are
                                                                                                                                                                                                                              incorporated.
                                                 9.7 Evaluation process     Process in which objectives and purchasing plans are compared against actual performance and the differences are analysed.                                                                                      Purchasing                                 Evaluation of                                                                    All objectives aimed
                                                                                                                                                                                                                                                                                            evaluation is part                         purchasing                                                                       at improving
                                                                                                                                                                                                                                                                                            of overall                                 objectives on the                                                                efficiency are taken
                                                                                                                                                                                                                                                                                            evaluation of the                          basis of self                                                                    into account in the
                                                                                                                                                                                                                                                                                            organisation/obje                          evaluation.                                                                      purchasing policy
                                                                                                                                                                                                                                                                                            ctives are                                 Improvement                                                                      and plan.
                                                                                                                                                                                                                                                                                            actively                                   plans are
                                                                                                                                                                                                                                                                                            compared                                   defined.
                                                                                                                                                                                                                                                                                            against the actual
                                                                                                                                                                                                                                                                                            situation and if
                                                                                                                                                                                                                                                                                            necessary are
                                                                                                                                                                                                                                                                                            adjusted by
                                                                                                                                                                                                                                                                                            management.
                                                 9.8 Strategy               The procurement policy is in line with the general organisational strategy and planning with respect to facilities, financial policy,                                                      Purchasing           The procurement                                                The procurement                                              Objectives are based
                                                                            technical aspects, environmental and quality policies. In addition to incorporating ethical codes, the procurement policy also                                                             objectives are       policy is based                                                policy is part of                                            on benchmarking.
                                                                            addresses issues of social responsibility (such as improving employment opportunities locally or promoting sustainable                                                                     clearly in line      on the general                                                 the general
                                                                            purchasing). The procurement policy may also state that a 'truck system' applies to specific commodity/purchase families.                                                                  with the             policy.                                                        policy.
                                                                                                                                                                                                                                                                       organisation's       Purchasing
                                                                                                                                                                                                                                                                       objectives.          objectives are in
                                                                                                                                                                                                                                                                                            line with the
                                                                                                                                                                                                                                                                                            organisation's
                                                                                                                                                                                                                                                                                            and other
                                                                                                                                                                                                                                                                                            objectives.
                                                                                                                                                                                                                                                                                            Purchasing is
                                                                                                                                                                                                                                                                                            involved in
                                                                                                                                                                                                                                                                                            drafting budgets.
Summary   The process         No procurement       The procurement     As 2, but the        As 3, but the        As 4, there is        As 5, evidence       As 6, the            As 7, and the       As 8, and           As 9, the outcomes of
          does not apply to   plan is in place,    plan has been       purchasing           procurement plan     good                  that (self)          procurement          relevant parts of   evaluation of the   benchmark analyses
          the organisation    or a limited plan    based on a          objectives are       is implemented       communication         evaluations are      policy has been      the procurement     risk in the         are used when
          or part of the      has been drawn       detailed            clearly in line      as part of a         of procurement        used to formulate    translated into      policy are          suppliers market    drawing up the
          organisation.       up, in which         understanding of    with the             formal budgeting     policy matters to     procurement          approved             communicated to     forms an integral   procurement policy
                              case, it has been    the suppliers       organisation's       and evaluation       stakeholders          objectives and to    procurement          and discussed       part of the         and procurement
                              drawn up             market and the      objectives. The      process. The         internally. Little    set priorities for   plans by multi-      with strategic      procurement         plans. All objectives
                              exclusively by       supplier base.      purchasing           procurement          evidence of           undertaking          disciplinary         suppliers. There    policy and the      aimed at improving
                              purchasing. The      There is a good     objectives and       policy is based      communication         improvement          sessions.            is evidence that    procurement         efficiency are taken
                              procurement plan     understanding of    the relationship     on the general       of matters            initiatives. Some    Commitment           the outcomes of     plans.              into account in this
                              only describes       relationships and   with the             policy.              relating to the       objectives in the    (support) for the    the discussions                         process. These
                              which activities     opportunities in    organisation's       Purchasing           procurement           procurement          procurement          are used to                             objectives relate
                              need to be           the current         objectives are       objectives are in    policy to strategic   policy also focus    policy is actively   update the                              partly to purchasing
                              carried out by the   suppliers market.   explicitly stated    line with the        suppliers.            on the internal      sought and           procurement                             and process
                              different            There is a          in formal reports.   organisation's                             efficiency of the    obtained from the    policy (in the                          optimisation. The
                              purchasing           system for          Models such as       and other                                  purchasing           lowest possible      future).                                procurement plan is
                              organisations.       distinguishing      BSC, INK or          objectives.                                process in           authorised body                                              part of line
                              Key policy           between             EFQM are used        Objectives are                             addition to          (the lowest level                                            organisation policies,
                              principles are       suppliers (using    for this purpose.    actively                                   getting the most     that can take                                                not just purchasing.
                              used. There is no    procurement                              compared                                   from supplier        these decisions)
                              system for           models) and to                           against the actual                         alliances. A         and the most
                              distinguishing       indicate the                             situation and if                           system for           important
                              between              approach                                 necessary are                              differentiating      stakeholders.
                              suppliers (using     required for                             adjusted by                                between              The procurement
                              procurement          different                                management.                                suppliers is in      policy forms part
                              models) or to        suppliers.                               Purchasing is                              use (using           of and is
                              indicate the                                                  involved in                                procurement          recorded in the
                              approach                                                      drafting budgets.                          models) and for      general policy.
                              required for                                                                                             indicating the
                              different                                                                                                approach
                              suppliers.                                                                                               required for
                                                                                                                                       different
                                                                                                                                       suppliers.
Support process 2
Structure of the purchasing organisation
General description                                         Aspects              Notes                                                                                                                                   0 (N/A)             1                   2                    3                   4                      5                  6                    7                    8                    9                     10
Structure of the purchasing organisation, i.e. the      10. Multi-disciplinary   Partnerships with the various disciplines within the organisation and with suppliers and clients.                                                 No or little         Purchasing           Clarity about       Some multi-            Different multi-                        All necessary        Multi-disciplinary   Multi-disciplinary
allocation of tasks, responsibilities and authorities   1   collaboration                                                                                                                                                          coordination and     expertise is         roles and the       disciplinary           disciplinary                            multi-disciplinary   teams also           teams work in
throughout the organisation.                                                                                                                                                                                                       partnership          involved in all      responsibilities of collaboration          teams have been                         teams have been      influence            partnership with
                                                                                                                                                                                                                                   between roles        purchasing and       team members                               put in place at                         put in place. A      developments         the client and the
                                                                                                                                                                                                                                   within the           expenditure flows                                               the level of the                        steering group       with contracted      supplier to
                                                                                                                                                                                                                                   organisation,        and is also                                                     part of the                             provides             suppliers            achieve
                                                                                                                                                                                                                                   between different    informed at the                                                 organisation                            guidance to the                           improvements/in
                                                                                                                                                                                                                                   organisations        appropriate time                                                                                        teams (group-                             novations
                                                                                                                                                                                                                                   and between the      in order to                                                                                             wide)
                                                                                                                                                                                                                                   various              contribute to the
                                                                                                                                                                                                                                   purchasing           supplier selection
                                                                                                                                                                                                                                   organisations of     and contracting
                                                                                                                                                                                                                                   parts of             process.
                                                                                                                                                                                                                                   organisations.
                                                        10. Evaluation           Evaluation of the level and performance of purchasing within the organisation.                                                                                                                                                                                                 Steering group
                                                        2                                                                                                                                                                                                                                                                                                       evaluates the
                                                                                                                                                                                                                                                                                                                                                                performance and
                                                                                                                                                                                                                                                                                                                                                                the level of the
                                                                                                                                                                                                                                                                                                                                                                purchasing role
                                                                                                                                                                                                                                                                                                                                                                within the
                                                                                                                                                                                                                                                                                                                                                                organisation and
                                                                                                                                                                                                                                                                                                                                                                takes decisions
                                                                                                                                                                                                                                                                                                                                                                about suitable
                                                                                                                                                                                                                                                                                                                                                                participants for
                                                                                                                                                                                                                                                                                                                                                                these teams
                                                        10. Responsibility       Extent of responsibility: from implementation to a more strategic/responsible role, with a differentiation between tactical and                   The purchasing       Purchasing         Purchasing has                               Supplier            strategic                                                                          Role separation
                                                        3                        operational activities. Strategic activities include defining policy and the main aspects of supplier management. Tactical activities             role is primarily    expertise is       both tactical and                            evaluation,         purchasing is                                                                      between strategic,
                                                                                 include contracting, product design, market research. Operational activities include the ordering and receipt of products.                        executive and        involved in all    strategic role                               selection and       implemented as                                                                     tactical and
                                                                                                                                                                                                                                   administrative       tactical and                                                    integration in      a separate set of                                                                  operational
                                                                                                                                                                                                                                                        operational                                                     product process     activities (in                                                                     purchasing
                                                                                                                                                                                                                                                        purchasing                                                      innovation takes    addition to
                                                                                                                                                                                                                                                        activities in good                                              place in local      tactical and
                                                                                                                                                                                                                                                        time.                                                           (organisation       operational
                                                                                                                                                                                                                                                                                                                        part) teams.        activities)
                                                        10. Documentation        The availability of documents and other evidence to demonstrate the existence of specific activities (including the reasoning                                          Little evidence of                                                                  Formal evidence
                                                        4                        behind a decision).                                                                                                                                                    the existence of                                                                    of strategic
                                                                                                                                                                                                                                                        strategic                                                                           purchasing
                                                                                                                                                                                                                                                        purchasing
                                                                                                                                                                                                                                                        activities
                                                        10. Management level     Position of purchasing management within the organisation and level of the organisation at which the responsibility for purchases                                                           Purchasing is         Some evidence                                                Purchasing is
                                                        5                        is held.                                                                                                                                                                                    represented at        of coordination of                                           represented on
                                                                                                                                                                                                                                                                             strategic level for   the purchasing                                               policy-defining
                                                                                                                                                                                                                                                                             which a member        role across parts                                            committees at
                                                                                                                                                                                                                                                                             of the                of the                                                       group level
                                                                                                                                                                                                                                                                             management            organisation
                                                                                                                                                                                                                                                                             team (MT) holds
                                                                                                                                                                                                                                                                             ultimate
                                                                                                                                                                                                                                                                             responsibility.
                                                        10. Optimisation of      Optimisation of the purchasing organisation by distributing purchasing tasks, taking into account the purchasing portfolio and                    Purchasing tasks                                                Purchasing tasks                         Distribution of                                                                    Role separation
                                                        6   purchasing           characteristics of the organisation.                                                                                                              are distributed to                                              are distributed in                       purchasing tasks                                                                   between strategic,
                                                                                                                                                                                                                                   a (very) limited                                                a reasonably                             fully coordinated                                                                  tactical and
                                                                                                                                                                                                                                   extent,                                                         coordinated way                                                                                                             operational
                                                                                                                                                                                                                                   distribution is                                                                                                                                                                             purchasing, and
                                                                                                                                                                                                                                   uncoordinated.                                                                                                                                                                              between the various
                                                                                                                                                                                                                                                                                                                                                                                                                               disciplines
                                                        10. Purchasing           Extent to which the purchasing organisation structure is in line with the general organisation strategy, objectives and structure,                Not in line                               Some of the                                                                                                                                       Purchasing
                                                        7   organisation         and the extent to which the purchasing structure supports strategic, tactical and operational purchasing. A specific organisation                                                           purchasing                                                                                                                                        organisation is fully in
                                                                                 configuration has been selected on the strength of structural variables, e.g. centralised, decentralised or coordinated.                                                                    organisation is in                                                                                                                                line with the
                                                                                                                                                                                                                                                                             line with the                                                                                                                                     organisation's policy,
                                                                                                                                                                                                                                                                             policy, objectives                                                                                                                                objectives and
                                                                                                                                                                                                                                                                             and structure of                                                                                                                                  structure
                                                                                                                                                                                                                                                                             the organisation

                                                        10. Communication        Extent to which the purchasing organisation structure is communicated to stakeholders.                                                            The distribution                                                The distribution
                                                        9                                                                                                                                                                          of purchasing                                                   of purchasing
                                                                                                                                                                                                                                   tasks is not                                                    tasks is
                                                                                                                                                                                                                                   communicated to                                                 communicated to
                                                                                                                                                                                                                                   interested parties                                              stakeholders.

                                                        10. Policy relating to   Formalisation of the policy with respect to partnerships between parts of the organisation with different basic principles.                       No policy            Some thought         Formal policy                              Evaluation of the                                            Identification of
                                                        8   partnerships                                                                                                                                                                                has been given       covering the                               current policy on                                            possible areas
                                                                                                                                                                                                                                                        to possible          approach to                                partnerships                                                 for improvement
                                                                                                                                                                                                                                                        partnerships         partnerships with                                                                                       and further
                                                                                                                                                                                                                                                                             other (parts of)                                                                                        refining of the
                                                                                                                                                                                                                                                                             organisations                                                                                           partnership
                                                                                                                                                                                                                                                                             with different                                                                                          policy
                                                                                                                                                                                                                                                                             basic principles.
Summary   The process         Little or no         Purchasing           As 2, purchasing      As 3, with some      As 4, a number     As 5, strategic       As 6, all the       As 7, multi-        As 8, multi-         The current
          does not apply to   coordination         expertise is         fulfils both a        evidence of          of multi-          purchasing is         necessary multi-    disciplinary        disciplinary         purchasing
          the organisation    and/or               involved in all      tactical and a        coordination of      disciplinary       implemented as        disciplinary        teams also          teams work in        organisation is in line
          or part of the      partnership          purchasing and       strategic role.       the purchasing       teams have been    a separate set of     teams have been     influence           partnership with     with the policy,
          organisation.       between the          expenditure flows    There is clarity      role across parts    put in place at    activities in         put in place. A     developments        the client and the   objectives and
                              purchasing roles     and is also          about roles and       of the               the level of the   addition to           steering group      with contracted     supplier to          structure of the
                              within the           informed at the      the                   organisation.        part of the        tactical and          provides            suppliers.          achieve              organisation. The
                              organisation and     appropriate time     responsibilities of   Purchasing tasks     organisation to    operational           guidance to the     Identification of   improvements/in      purchasing
                              between other        in order to          team members.         are distributed in   support supplier   purchasing            teams group-        possible areas      novations.           organisation
                              roles. The           contribute to the    Purchasing is         a reasonably         evaluation,        activities. Typical   wide, coordinates   for improvement                          maximises strategic,
                              purchasing role      supplier selection   represented at        coordinated way      selection and      strategic             decision making     and further                              tactical and
                              is primarily         and contracting      strategic level for   and are              integration in     purchasing            between the         refining of the                          operational
                              executive and        process. Tactical    which a member        communicated to      processes for      activities are        teams, evaluates    partnership                              purchasing (role
                              administrative.      purchasing has       of the                stakeholders.        product and        carried out           the position and    policy.                                  separation takes
                              Purchasing tasks     been                 management            Some multi-          process            formally and          the level of the                                             place within this).
                              are distributed to   implemented as       team (MT) holds       disciplinary         development.       within a              purchasing role                                              Role separation also
                              a limited extent     a separate group     ultimate              teams to support     The current        structure, for        within the                                                   takes place between
                              only to achieve      of activities in     responsibility.       purchasing           policy on          example carrying      organisation and                                             the different
                              leverage,            addition to          Some of the           processes.           partnerships is    out fundamental       takes decisions                                              disciplines.
                              distribution is      operational          purchasing                                 evaluated.         market research       about suitable
                              uncoordinated        purchasing.          organisation is in                                            or technical          participants in
                              and is not           There is little      line with the                                                 research and          these teams.
                              communicated.        evidence of          policy, objectives                                            developing a          Purchasing is
                              There is no          strategic            and structure of                                              strategy for each     represented on
                              policy for           purchasing           the organisation.                                             commodity/purch       policy-defining
                              partnership          activities. Some     Formal policy                                                 ase family. The       committees at
                              arrangements.        thought has been     covering the                                                  distribution of       group level.
                                                   given to possible    approach to                                                   purchasing tasks
                                                   partnerships with    partnerships with                                             to achieve
                                                   other                other (parts of)                                              leverage is fully
                                                   organisations (or    organisations                                                 coordinated.
                                                   parts of             with different
                                                   organisations)       basic principles.
                                                   and how this
                                                   could work out in
                                                   practice.
Support process 3
Globalisation
General description   Aspects   Notes   0 (N/A)   1   2   3   4   5   6   7   8   9   10
Support process 4
Performance indicators for purchasing
General description                                    Aspects            Notes                                                                                                                          0 (N/A)            1                   2                   3                   4                   5                   6                 7                      8                    9                     10
Information that provides an understanding of   12.1   Indicators         Use of performance indicators to monitor supplier and purchasing performance (including financial and quality indicators).               No supplier                              Formal criteria                        Wide-ranging        Performance                             Qualitative and       Purchasing
supplier performance                                                                                                                                                                                               performance                              and a system in                        integrated set of   indicators in                           quantitative          performance
                                                                                                                                                                                                                   indicators or                            place to identify                      performance         place for                               (TCO)                 indicators form
                                                                                                                                                                                                                   basic set of                             the suppliers                          indicators in       measuring the                           performance           part of an
                                                                                                                                                                                                                   indicators (to                           whose                                  place to measure    efficiency of                           indicators in         integrated set of
                                                                                                                                                                                                                   evaluate the                             performance                            the performance     purchasing                              place for the         organisational
                                                                                                                                                                                                                   performance of                           should be                              of suppliers in     processes (for                          entire lifecycle of   performance
                                                                                                                                                                                                                   suppliers: e.g.                          measured.                              the operational     optimising                              the purchased         indicators
                                                                                                                                                                                                                   quality, price                                                                  and improvement     purchasing                              product.
                                                                                                                                                                                                                   changes,                                                                        process             processes)
                                                                                                                                                                                                                   timeliness of
                                                                                                                                                                                                                   deliveries and
                                                                                                                                                                                                                   availability of
                                                                                                                                                                                                                   support) and
                                                                                                                                                                                                                   purchasing
                                                                                                                                                                                                                   performance
                                                12.2                      Extent to which purchasing performance indicators are in line with purchasing policy and the organisation's objectives.                  indicators           Purchasing
                                                       Integration of
                                                       performance                                                                                                                                                                      performance
                                                       indicators and                                                                                                                                                                   indicators are in
                                                       objectives                                                                                                                                                                       accordance with
                                                                                                                                                                                                                                        the procurement
                                                                                                                                                                                                                                        policy and the
                                                                                                                                                                                                                                        organisation's
                                                                                                                                                                                                                                        objectives
                                                12.3   Evaluation         Measuring actual quality and quantity against target and analysis of the differences on the basis of performance indicators,             Supplier                                 Frequent                                                                      Self-evaluations     Measurement of        Purchasing            Measured values are
                                                                          including indicators such as price, quality, delivery service. TCO should also be into account.                                          performance                              evaluation of                                                                 are organised on     aspects such as       performance           used to identify,
                                                                                                                                                                                                                   indicators are                           suppliers'                                                                    a regular basis to   price, quality,       indicators are        isolate and analyse
                                                                                                                                                                                                                   measured and                             performance.                                                                  measure the          delivery service      regularly (at least   the most important
                                                                                                                                                                                                                   compared                                                                                                               maturity of          and the costs of      once a quarter)       product cost drivers
                                                                                                                                                                                                                   against targets                                                                                                        purchasing           non-performance       and formally          in the entire supply
                                                                                                                                                                                                                                                                                                                                                               by the supplier.      evaluated at          chain together with
                                                                                                                                                                                                                                                                                                                                                               The performance       management            suppliers and
                                                                                                                                                                                                                                                                                                                                                               measures are          level in formal       customers.
                                                                                                                                                                                                                                                                                                                                                               used for future       management
                                                                                                                                                                                                                                                                                                                                                               purchasing plans      reports (using
                                                                                                                                                                                                                                                                                                                                                               (sourcing), new       tools such as
                                                                                                                                                                                                                                                                                                                                                               development           Business
                                                                                                                                                                                                                                                                                                                                                               plans and             Balanced
                                                                                                                                                                                                                                                                                                                                                               continuous            Scorecard,
                                                                                                                                                                                                                                                                                                                                                               improvement           EFQM or INK).
                                                                                                                                                                                                                                                                                                                                                               activities, in
                                                                                                                                                                                                                                                                                                                                                               accordance with
                                                                                                                                                                                                                                                                                                                                                               the regulations
                                                12.4   Documentation      Availability of documents and other evidence to demonstrate the existence of specific activities.                                                             Written evidence                                                               Performance
                                                                                                                                                                                                                                        that indicators                                                                indicators to
                                                                                                                                                                                                                                        are in                                                                         measure the
                                                                                                                                                                                                                                        accordance with                                                                efficiency of
                                                                                                                                                                                                                                        purchasing and                                                                 purchasing
                                                                                                                                                                                                                                        organisational                                                                 processes have
                                                                                                                                                                                                                                        objectives                                                                     been defined and
                                                                                                                                                                                                                                                                                                                       explicitly
                                                                                                                                                                                                                                                                                                                       recorded.

                                                12.5   Communication      Providing feedback on performance to stakeholders, including suppliers.                                                                                                           Feedback on                                                Performance                                                   Formal
                                                                                                                                                                                                                                                            actual                                                     indicators are                                                evaluation at
                                                                                                                                                                                                                                                            performance                                                communicated to                                               management
                                                                                                                                                                                                                                                            relative to agreed                                         and understood                                                level via formal
                                                                                                                                                                                                                                                            performance is                                             by the whole                                                  management
                                                                                                                                                                                                                                                            given to direct                                            organisation.                                                 reports.
                                                                                                                                                                                                                                                            stakeholders.

                                                12.6   Improvement plan Extent to which improvement plans are developed on the basis of measured performance values.                                                                                                             Measured values                                                               Improvement
                                                                                                                                                                                                                                                                                 are used to                                                                   plans based on
                                                                                                                                                                                                                                                                                 prepare general                                                               evaluations
                                                                                                                                                                                                                                                                                 plans for                                                                     resulting in
                                                                                                                                                                                                                                                                                 improvement                                                                   continual
                                                                                                                                                                                                                                                                                 together with                                                                 improvements in
                                                                                                                                                                                                                                                                                 suppliers                                                                     results.
                                                12.7   Classification     Classification system for purchased products.                                                                                            A system for
                                                       system                                                                                                                                                      grouping
                                                                                                                                                                                                                   commodity/purch
                                                                                                                                                                                                                   ase families is in
                                                                                                                                                                                                                   use.
Summary   The process         No supplier          As 1, and there is   As 2, there are      As 3, the         As 4, and there is   As 5, and there     As 6, and self-    As 7, there are       As 8, and the         Measured values are
          does not apply to   performance          written evidence     formal criteria      measured values   a wide-ranging       are indicators in   evaluations are    qualitative and       purchasing            used to identify,
          the organisation    indicators or        that the             and a system in      are used to       integrated set of    place for           organised on a     quantitative          performance           isolate and analyse
          or part of the      basic set of         purchasing           place to identify    prepare general   performance          measuring the       regular basis to   (TCO)                 indicators form       the most important
          organisation.       indicators (to       performance          the suppliers        plans for         indicators in        efficiency of       measure the        performance           part of an            product cost drivers
                              evaluate the         indicators are in    whose                improvement       place to measure     purchasing          maturity of        indicators in         integrated set of     in the entire supply
                              performance of       accordance with      performance          together with     the performance      processes (for      purchasing.        place for the         organisational        chain together with
                              suppliers: e.g.      the procurement      should be            suppliers.        of suppliers in      optimising          Benchmarking is    entire lifecycle of   performance           suppliers and
                              quality, price       policy and the       measured.                              the operational      purchasing          also used.         the purchased         indicators. The       customers.
                              changes,             organisation's       Feedback on                            and improvement      processes). The                        product. These        indicators are
                              timeliness of        objectives.          actual                                 process.             performance                            indicators include    regularly (at least
                              deliveries and                            performance                                                 indicators are                         price, quality,       once a quarter)
                              availability of                           relative to agreed                                          communicated to                        delivery service      and formally
                              support) and                              performance is                                              and understood                         and the costs of      evaluated at
                              purchasing                                given to direct                                             by the whole                           non-performance       management
                              performance                               stakeholders and                                            organisation.                          by the supplier.      level in formal
                              indicators. The                           regularly                                                                                          The performance       management
                              supplier                                  evaluated.                                                                                         measures are          reports (using
                              performance                                                                                                                                  used for future       tools such as
                              indicators are                                                                                                                               purchasing plans      Business
                              measured and                                                                                                                                 (sourcing), new       Balanced
                              compared                                                                                                                                     development           Scorecard,
                              against targets. A                                                                                                                           plans and             EFQM or INK).
                              system for                                                                                                                                   continuous
                              grouping                                                                                                                                     improvement
                              commodity/purch                                                                                                                              activities, in
                              ase families is in                                                                                                                           accordance with
                              use.                                                                                                                                         the regulations.
                                                                                                                                                                           The results show
                                                                                                                                                                           constant
                                                                                                                                                                           improvement.
Support process 5
Information technology integration
General description                                    Aspects              Notes                                                                                                                                 0 (N/A)                1                    2                  3              4                    5                   6                  7                    8                    9                      10
Development and use of information technology   13.1   Purchasing           Advanced purchasing information system in use (contract/creditor database/liability accounts/purchasing management reports,                          No purchasing       There is a stand   The purchasing                      Information        Information         Information          If applicable,       Internet
(IT) for purchasing.                                   information          and use of e-procurement technology such as EDI). Purchasing system must be linked to financial system.                                              information         alone purchasing   information                         system supports    systems that        system supports      information          functionalities are
                                                       system                                                                                                                                                                    system is in use.   information        system forms                        the involvement    facilitate          strategic decision   systems facilitate   extensively used
                                                                                                                                                                                                                                 The purchasing      system solely      part of the                         of suppliers in    purchasing          making.              supplier             (e-commerce,
                                                                                                                                                                                                                                 department does     used for           integral                            the order          control. Use of                          involvement in       supplier
                                                                                                                                                                                                                                 not have a          operational        organisation's                      fulfilment         data warehouses                          product              selection, market
                                                                                                                                                                                                                                 network             purchasing         information                         process. Links     that support                             development          research, e-
                                                                                                                                                                                                                                 connection.         processes.         system.                             that transcend     volume-bundling,                         (e.g. CAD/CAM)       auctions and e-
                                                                                                                                                                                                                                                                                                            the organisation   standardisation                                               invoicing)
                                                                                                                                                                                                                                                                                                            such as extranet   and
                                                                                                                                                                                                                                                                                                            and EDI are in     centralisation of
                                                                                                                                                                                                                                                                                                            use.               commodity/purch
                                                                                                                                                                                                                                                                                                                               ase family
                                                                                                                                                                                                                                                                                                                               management and
                                                                                                                                                                                                                                                                                                                               decentralised
                                                                                                                                                                                                                                                                                                                               ordering




                                                13.2   Optimisation of      Extent to which information systems are used to optimise purchasing processes. For example, information systems can support                                                                                                                        Information         Information
                                                       processes            the strategic purchasing role by facilitating volume bundling, standardisation and centralisation of commodity/purchase family                                                                                                                     systems support     system supports
                                                                            management and decentralisation of ordering.                                                                                                                                                                                                       the strategic       and analysis
                                                                                                                                                                                                                                                                                                                               purchasing (role)   processes (e.g.
                                                                                                                                                                                                                                                                                                                                                   cost analysis
                                                                                                                                                                                                                                                                                                                                                   models)

                                                13.3   Purchasing           Extent to which information systems are used to measure performance indicators.                                                                                                                              Purchasing                                                                     Performance
                                                       performance                                                                                                                                                                                                                       performance                                                                    indicators are
                                                       indicators                                                                                                                                                                                                                        indicators are                                                                 used to draw
                                                                                                                                                                                                                                                                                         automatically                                                                  comparisons with
                                                                                                                                                                                                                                                                                         measured and                                                                   other
                                                                                                                                                                                                                                                                                         presented by the                                                               organisations
                                                                                                                                                                                                                                                                                         information                                                                    and to learn from
                                                                                                                                                                                                                                                                                         system                                                                         these



                                                13.4   Documentation        Availability of documents and other evidence to demonstrate the existence of specific activities. These documents can be used                                                                                Evidence that                         Evidence of the                                               Evidence that         Evidence of
                                                                            for knowledge management.                                                                                                                                                                                    purchasing                            fact that data                                                internet              participation in
                                                                                                                                                                                                                                                                                         performance                           warehouses are                                                functionalities are   information
                                                                                                                                                                                                                                                                                         indicators are                        used                                                          extensively used.     system/information
                                                                                                                                                                                                                                                                                         automatically                                                                                                             technology
                                                                                                                                                                                                                                                                                         measured and                                                                                                              management
                                                                                                                                                                                                                                                                                         presented by the
                                                                                                                                                                                                                                                                                         information
                                                                                                                                                                                                                                                                                         system
                                                13.5   Position within the Collaboration with IS/IT management to identify IT system requirements.                                                                                                                                                                                                                                                                 Evidence of formal
                                                       organisation                                                                                                                                                                                                                                                                                                                                                and proactive
                                                                                                                                                                                                                                                                                                                                                                                                                   collaboration with
                                                                                                                                                                                                                                                                                                                                                                                                                   information system
                                                                                                                                                                                                                                                                                                                                                                                                                   (IS)/information
                                                                                                                                                                                                                                                                                                                                                                                                                   technology (IT)
                                                                                                                                                                                                                                                                                                                                                                                                                   management to
                                                                                                                                                                                                                                                                                                                                                                                                                   identify purchasing
                                                                                                                                                                                                                                                                                                                                                                                                                   requirements and to
                                                                                                                                                                                                                                                                                                                                                                                                                   implement strategies



                                                13.6   IS/IT purchasing     Availability of IS/IT policy for purchasing aligned to the general IS/IT policy.                                                                                                                                                                                                                                                       IS/IT policy is aligned
                                                       policy                                                                                                                                                                                                                                                                                                                                                      to IS/IT policy for the
                                                                                                                                                                                                                                                                                                                                                                                                                   entire organisation

Summary                                                                                                                                                                                                      The process         No purchasing       There is a stand   The purchasing   As 3, there is     As 4, and the      As 5, there are     As 6, information    As 7, if             As 8, there is        As 9, there is
                                                                                                                                                                                                             does not apply to   information         alone purchasing   information      evidence that      information        information         systems support      applicable,          evidence that         evidence of formal
                                                                                                                                                                                                             the organisation    system is in use.   information        system forms     purchasing         system supports    systems that        strategic decision   information          internet              and proactive
                                                                                                                                                                                                             or part of the      The purchasing      system solely      part of the      performance        the involvement    facilitate          making.              systems facilitate   functionalities are   collaboration with
                                                                                                                                                                                                             organisation.       department does     used for           integral         indicators are     of suppliers in    purchasing                               supplier             extensively used      information system
                                                                                                                                                                                                                                 not have a          operational        organisation's   automatically      the order          control. There is                        involvement in       (e-commerce,          (IS)/information
                                                                                                                                                                                                                                 network             purchasing         information      measured and       fulfilment         evidence of the                          product              supplier              technology (IT)
                                                                                                                                                                                                                                 connection.         processes.         system.          presented by the   process. Links     use of data                              development          selection, market     management to
                                                                                                                                                                                                                                                                                         information        that transcend     warehouses for                           (e.g. CAD/CAM).      research, e-          identify purchasing
                                                                                                                                                                                                                                                                                         system.            the organisation   example to                               Performance          auctions and e-       requirements and to
                                                                                                                                                                                                                                                                                                            such as extranet   support the                              indicators are       invoicing).           implement strategies,
                                                                                                                                                                                                                                                                                                            and EDI are in     strategic                                used to draw                               an IS/IT policy is in
                                                                                                                                                                                                                                                                                                            use.               purchasing                               comparisons with                           place that is aligned
                                                                                                                                                                                                                                                                                                                               (function) using                         other                                      to the IS/IT policy of
                                                                                                                                                                                                                                                                                                                               volume bundling,                         organisations                              the whole
                                                                                                                                                                                                                                                                                                                               standardisation                          and to learn from                          organisation.
                                                                                                                                                                                                                                                                                                                               and                                      these.
                                                                                                                                                                                                                                                                                                                               centralisation of
                                                                                                                                                                                                                                                                                                                               commodity/purch
                                                                                                                                                                                                                                                                                                                               ase family
                                                                                                                                                                                                                                                                                                                               management and
                                                                                                                                                                                                                                                                                                                               decentralised
                                                                                                                                                                                                                                                                                                                               ordering.
Support process 6
Human resource management (HRM)
General description                                  Aspects               Notes                                                                                                                              0 (N/A)              1               2                    3                   4                   5            6                  7                  8                    9                     10
Development of knowledge and skills           14.1   HRM support           Availability of human resource management (HRM) support for the purchasing process (= purchasing role, in this case not the                  little or no HRM                                           HRM is involved     Specific HRM                                                             Information
(management of competences such as knowledge,                              buyer).                                                                                                                                      support for the                                            in individual       policy for                                                               systems for
attitude and skills)                                                                                                                                                                                                    purchasing                                                 evaluation of       purchasing,                                                              knowledge
                                                                                                                                                                                                                        process.                                                   knowledge and       including                                                                management are
                                                                                                                                                                                                                                                                                   skills              objectives,                                                              used across the
                                                                                                                                                                                                                                                                                                       succession                                                               individual parts
                                                                                                                                                                                                                                                                                                       planning,                                                                of the
                                                                                                                                                                                                                                                                                                       training,                                                                organisation
                                                                                                                                                                                                                                                                                                       recruitment and
                                                                                                                                                                                                                                                                                                       selection




                                              14.2   Purchasing profiles   Availability of purchasing profiles including job descriptions and competences. Profiles are used for recruitment, selection and                                No or limited                           Job profiles are                                                        A career policy is
                                                                           development.                                                                                                                                                    availability of up                      used.                                                                   actively pursued
                                                                                                                                                                                                                                           to date profiles                        Recruitment,                                                            that transcends
                                                                                                                                                                                                                                           for the                                 selection and                                                           the boundaries of
                                                                                                                                                                                                                                           purchasing role                         training based on                                                       roles
                                                                                                                                                                                                                                           (incl. job                              analysis of
                                                                                                                                                                                                                                           descriptions and                        required skills
                                                                                                                                                                                                                                           competences) for
                                                                                                                                                                                                                                           recruitment and
                                                                                                                                                                                                                                           selection
                                                                                                                                                                                                                                           purposes
                                              14.3   Training              Extent to which training is used to develop buyers' knowledge and skills.                                                                    No development     No personal                             Training based                                      Individual
                                                                                                                                                                                                                        of competences     competence                              on analysis of                                      training and
                                                                                                                                                                                                                                           development                             required skills                                     career planning

                                              14.4   Multi-disciplinary    Individual objectives are formulated that go beyond the limits of the role and the organisation.                                                                                                                                                                               Career policy that                        Multi-disciplinary
                                                     approach                                                                                                                                                                                                                                                                                             transcends the                            appraisal cycles
                                                                                                                                                                                                                                                                                                                                                          boundaries of
                                                                                                                                                                                                                                                                                                                                                          roles
                                              14.5   Evaluation            Evaluation and analysis of the differences between actual individual and team performance and individual targets.                                               Each buyer has Appraisal and         Continuous and Understanding of Purchasing is          Personal           Organisation          The part of the     Individuals are
                                                                                                                                                                                                                                           an individual      remuneration      formal process of the competences formally included development           actively pursues      organisation        evaluated in multi-
                                                                                                                                                                                                                                           appraisal and      system is related appraisal of      and specialised in the annual (as plans are used        a career policy       actively pursues    disciplinary appraisal
                                                                                                                                                                                                                                           individual targets to purchasing     individual skills knowledge          a rule)           based on the       that transcends       a career policy     cycles take place.
                                                                                                                                                                                                                                           are set            performance.      (required versus available within    management        purchasing         the boundaries of     that transcends     Team targets are set
                                                                                                                                                                                                                                                              There is an       available).       the organisation's development       profile, disparity positions (within     the boundaries of   and regularly
                                                                                                                                                                                                                                                              explicit          Assessment of     workforce that     review of all the analysis and staff the part of the       the organisation    evaluated on the
                                                                                                                                                                                                                                                              relationship      competence        could be           different         appraisals         organisation)                             basis of a formal
                                                                                                                                                                                                                                                              between the                         employed in        departments                                                                    process
                                                                                                                                                                                                                                                              achievement of                      purchasing
                                                                                                                                                                                                                                                              purchasing                          teams
                                                                                                                                                                                                                                                              targets and the
                                                                                                                                                                                                                                                              outcomes of staff
                                                                                                                                                                                                                                                              appraisals.
                                                                                                                                                                                                                                                              Appraisal and
                                                                                                                                                                                                                                                              remuneration
                                                                                                                                                                                                                                                              plans are partly
                                                                                                                                                                                                                                                              related to the
                                                                                                                                                                                                                                                              performance of
                                                                                                                                                                                                                                                              the multi-
                                                                                                                                                                                                                                                              disciplinary team
                                              14.6   Remuneration          The method by which the buyer's remuneration is determined.                                                                                                     Buyers'            The
                                                                                                                                                                                                                                           remuneration is remuneration
                                                                                                                                                                                                                                           set individually   system is linked
                                                                                                                                                                                                                                                              to purchasing
                                                                                                                                                                                                                                                              performance




                                              14.7   Communication         Communication of personal development plan by purchasing manager to the individual.                                                                                                                                                                         The personal
                                                                                                                                                                                                                                                                                                                                       development
                                                                                                                                                                                                                                                                                                                                       plan is evaluated
                                                                                                                                                                                                                                                                                                                                       at regular
                                                                                                                                                                                                                                                                                                                                       intervals by
                                                                                                                                                                                                                                                                                                                                       purchasing
                                                                                                                                                                                                                                                                                                                                       manager and
                                                                                                                                                                                                                                                                                                                                       individual.
                                              14.8   Teams                 Extent of team based performance.                                                                                                                                                    Appraisal and                                                                                                                       Team targets are set
                                                                                                                                                                                                                                                                remuneration                                                                                                                        and regularly
                                                                                                                                                                                                                                                                system linked to                                                                                                                    evaluated on the
                                                                                                                                                                                                                                                                purchasing                                                                                                                          basis of a formal
                                                                                                                                                                                                                                                                performance                                                                                                                         process.



                                              14.9   Documentation         Availability of documents and other evidence to demonstrate the existence of specific activities.                                            No or limited   Little evidence of      Evidence that      Evidence that job                                   Evidence that
                                                                                                                                                                                                                        evidence of HRM personal                remuneration is    profiles are used                                   personal
                                                                                                                                                                                                                        support         competence              linked to                                                              development
                                                                                                                                                                                                                                        development             purchasing                                                             plan is regularly
                                                                                                                                                                                                                                                                performance                                                            evaluated


                                              14.10 Employee integrity     Extent to which employee integrity is supervised.                                                                                                               No specific          Employees are      Employee                                            Employees                                The part of the
                                                                                                                                                                                                                                           supervision          informed of the    integrity is                                        receive feedback                         organisation
                                                                                                                                                                                                                                                                integrity          evaluated                                           on the extent to                         takes effective
                                                                                                                                                                                                                                                                principles they                                                        which they are                           measures to
                                                                                                                                                                                                                                                                must uphold                                                            upholding the                            ensure that
                                                                                                                                                                                                                                                                                                                                       integrity                                employees
                                                                                                                                                                                                                                                                                                                                       principles                               uphold integrity
                                                                                                                                                                                                                                                                                                                                                                                principles
Summary   The process         There is little or   Up to date job       As 2, the            As 3, there is a     As 4, there is a     As 5, purchasing     As 6, personal       As 7, the part of   As 8, the part of   As 9, there is
          does not apply to   no HRM support       profiles for         appraisal and        continuous and       specific HRM         is formally          development          the organisation    the organisation    evidence that multi-
          the organisation    for the              procurement          remuneration         formal process of    policy for           included in the      plans are used       actively pursues    actively pursues    disciplinary appraisal
          or part of the      procurement          (incl. job           system is related    appraisal of         purchasing,          annual (as a rule)   (including           a career policy     a career policy     cycles take place.
          organisation.       process. There is    descriptions and     to purchasing        individual skills    including            management           individual           that transcends     that transcends     Team targets are set
                              no focus on          competences)         performance.         (required versus     objectives,          development          training and         the boundaries of   the boundaries of   and regularly
                              developing           are available.       There is an          available) and       succession           review of all the    career plans)        roles (within the   the organisation.   evaluated on the
                              competences.         Profiles are used    explicit             recruitment          planning,            different            based on the         part of the         Each part of the    basis of a formal
                                                   for recruitment      relationship         and/or training on   training,            departments.         purchasing           organisation).      organisation        process.
                                                   and selection.       between the          this basis. There    recruitment and                           profile, disparity                       implements
                                                   There is             achievement of       is evidence that     selection. There                          analysis and staff                       effective
                                                   evidence that        purchasing           job profiles are     is an                                     appraisals. The                          measures to
                                                   personal             targets and the      used and HRM is      understanding of                          purchasing                               ensure that
                                                   assessment           outcomes of staff    involved in this     the competences                           manager and the                          employees
                                                   takes place and      appraisals (for      process.             and specialised                           individual                               uphold integrity
                                                   individual targets   anyone involved      Evaluation of the    knowledge                                 evaluate the                             principles.
                                                   are set for each     in the purchasing    integrity of         available within                          personal                                 Information
                                                   purchaser. Little    process).            employees takes      the organisation's                        development                              systems for
                                                   evidence of          Appraisal and        place.               workforce that                            plan regularly.                          knowledge
                                                   personal             remuneration                              could be                                  Employees                                management are
                                                   competence           plans are partly                          employed in                               receive feedback                         used across the
                                                   development.         related to the                            purchasing                                on the extent to                         individual parts
                                                   There is no          performance of                            teams.                                    which they are                           of the
                                                   specific             the multi-                                                                          upholding the                            organisation.
                                                   supervision of       disciplinary team.                                                                  integrity
                                                   employees'           Employees are                                                                       principles.
                                                   integrity.           informed of the
                                                                        integrity
                                                                        principles they
                                                                        must uphold.

				
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